You are here: Home - News -

Shock statistics show borrowers’ ignorance over interest rates

  • 10/03/2003
  • 0
Brokers are shocked at survey data showing nearly half of borrowers have no idea what rate they are ...

Brokers are shocked at survey data showing nearly half of borrowers have no idea what rate they are on.

Norwich & Peterborough Building Society (N&P) has found that although 97% of those with a mortgage are on a special deal, 49% do not know what rate of interest they pay, and could possibly do better.

James Rodea, business development director at Hamptons International Mortgages, acknowledged that revisiting clients when you think they could get a better deal was seldom time wasted. However, he took issue with the statistics.

He said: ‘I am shocked by the figures, we have found people are generally financially aware and know not only their rate but what their redemption penalties would be. That could be a London thing, but I doubt it.’

There is little resistance to remortgaging. Three quarters of those surveyed expressed an interest in saving money on their monthly mortgage payments over the life of the loan and 68% have switched mortgages to another lender to save themselves money in the past.

Rodea said: ‘Five years ago people concentrated on what rate they were paying. Nowadays, with interest rates so low, what they care about is what they are paying per month, rather than a headline rate.’

Of those with a mortgage, 49% knew what type of mortgage they wanted before they took it out, 32% were given advice and a recommendation on which mortgages were available and which was most suitable for them and 19% made an informed choice after being given information on the different types of mortgage on offer.


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Sub-prime lenders to take mainstream road

Expansion: Future Mortgages and SPML launch their first products for the prime market