Nearly three million mortgage holders in the United Kingdom are unaware of the interest rates that they are paying for their loans, according to a report.
Research conducted by Post Office in the UK showed that 28 percent of the people in the country have no idea on the interest rate they are paying for their mortgage obligations each month.
Additionally, 35 percent are paying back cash on their lender’s standard variable rate (SVR) believing that this is the best deal available for them, but the fact is, this may not be the case.
Marco Hughes, personal lending director of Post Office UK, said that mortgage holders who focus only on the SVR may become vulnerable if the Bank of England base rate increases.
"Switching mortgage does not have to be a stressful experience and spending a bit of time searching and comparing deals could save you a significant amount of money," said Mr. Hughes.
The study was conducted following the news that the Post Office had cut down its rates on fixed and tracker products, which are available with a loan-to-value of up to 80 percent.