Are you, as a consumer fully aware of your mortgage product?
A recent study conducted by the Consumer Financial Education Body (CFEB) has highlighted the following facts:
- One in seven mortgage borrowers do not know how much interest they are paying on their mortgage
- 74% mortgage borrowers are unaware of the implications that1% increase in the base rate would have on their monthly payments
- 54% of mortgage borrowers have no inclination to review their current mortgage
- 51% of mortgage borrowers believe interest rates will increase within the next nine months
- 15% are not even sure when their current mortgage expires
- 14 % of mortgage borrowers have no idea how they would reduce other expenses in their life if they were faced with a mortgage rise of £200 per month
In conclusion the research indicates that many borrowers are simply not aware of their mortgage situation and do not put enough thought, planning and preparation into their mortgages. When you consider that for most, a mortgage is the single largest financial commitment – it is alarming that many can be so blasé.
When you factor mis-sold mortgages into the equation, it is a pottential recipe for disaster. This is why intervention from the Financial Services Authority (FSA) and Financial Ombudsman Service (FOS) is of critical importance during these difficult financial times.
If you feel that you have been mis-sold a mortgage or related Payment Protection Insurance (PPI), Cloud 9 Claims will be able to help you.
