Around 42 per cent of all UK mortgage holders are unaware of their current mortgage rate, research from the Keep Me Posted campaign has found
The survey of more than 1,000 homeowners by Censuswide in August also found more than a third were surprised to learn if the base rate increases by just 1 per cent, it could add £91 to the average UK variable mortgage payment.
When asked how they would like to be notified of a change to their mortgage rate, 67 per cent preferred a printed letter, increasing to 77 per cent of those aged 55 plus.
This is compared with just 22 per cent who would like an email and 5 per cent who would like a text.
Furthermore, 65 per cent of mortgage holders admitted a printed letter would make them most likely to take action, including shopping around for a better deal, compared with 23 per cent for email and 5 per cent for text.
Almost a third of those surveyed believed an interest rate increase of 1 per cent would not be affordable, with a a fifth of these stating they would have to make significant sacrifices to afford their mortgage, and a one in 10 suggesting it would tip them into financial difficulties.
Judith Donovan, chairman of the Keep Me Posted campaign, said: “There is no doubt that at present, a large number of people stand to be affected significantly if the base rate rises, meaning many may be left struggling to afford their monthly mortgage payments.
“What was particularly shocking to us was the number of people that currently aren’t aware of their mortgage rate.
“It is also clear from our research that homeowners are more likely to react to any changes if notified via a posted letter. Companies should be aware that digital channels may not be suitable for all their customers and should be careful not to take a one size fits all approach.”
The campaign believes legislative and regulatory action needs to be taken before this becomes a serious issue.
