Understand Your Own Mortgage to Make Smart Financial Decisions
With the never ending pressures and time constraints accompanying everyday life, it makes sense that 15 per cent of borrowers don’t quite understand the mortgage deal they are currently in. According to figures recently by the Consumer Financial Education Body, a similar percentage of people don’t know when their deal expires.
Even more interesting, is that 75 per cent of borrowers don’t understand what effect a simple 1 per cent change in interest rate will have on their finances. The Consumer Financial Education Body is lauding a campaign called "Stay on top of your mortgage." It will give advice about handling a mortgage as interest rates and personal conditions change. Possibly the most surprising of all figures, coming out of the body’s survey, is that 54 per cent had no plans on reviewing their mortgage situation or they would leave it to the last moment to review it. It is possible that borrowers have remained "hands off" with their own financial situation because of sustained periods of low rates. These figures point to the fact that borrowers should be more aware of what golden opportunities are available for first time homeowners or remortgage candidates. A trained mortgage officer can make the process a simple one by researching the market and therefore enabling borrowers to make an informed decision.