Mortgages  

Third of borrowers don’t know how much their mortgage costs

Third of borrowers don’t know how much their mortgage costs

More than 5m people in Britain have no idea how much their mortgage is costing them, according to research from digital broker Habito.

There are 7.6m active mortgages in Britain, and the study found one-third of borrowers did not know what interest rate they were paying.

Habito suggested this could be because of the complexity and hassle of the mortgage application process and a reluctance to manage mortgages effectively over the long term.

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At the beginning of May, the firm commissioned YouGov to survey 4,236 adults, of which 1,258 were mortgage owners and 33 had a mortgage through shared ownership.

Meanwhile, Mortgage holders in Wales were the savviest when it came to knowing what interest rate they are paying on their mortgage (79 per cent), compared with 65 per cent of mortgage holders in London and 63 per cent in the south east, where house prices are often higher.

The research also revealed a stark gender gap, with 61 per cent of women knowing how much interest they pay on their mortgage, compared to 73 per cent of men.