42% of mortgagers ignorant of rate

Almost half of mortgage holders (42%) are unaware of their current mortgage rate, Keep Me Posted research has revealed.

Indeed, over a third (38%) are surprised to learn that a 1% base rate rise would add £91 to the average UK variable mortgage payment.

Most mortgage holders (67%) would prefer to receive a printed letter if their rate changed, while the figure rises to 77% for older borrowers. Just 22% would prefer to be notified by email while 5% favour texts.

Mortgage holders worry at the prospect of a 1% base rate rise, as 31% would expect to have to make significant sacrifices or else be forced into financial difficulty. A further 42% think they could afford it but they would find themselves financially stretched.

Judith Donovan CBE, chair of the Keep Me Posted campaign, said: “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.”