22 September 2014
Principality Know Your Mortgage Infographic
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KNOW YOUR MORTGAGE
In summer 2014, we asked 1000 adults across Wales and England their opinions on a range of issues to do with mortgages. Here’s what we discovered…
THE GOOD NEWS...
95% of people can NAME their mortgage provider - Well done them!
87% are able to state the amount of their monthly mortgage repayment
88% of people know the difference between a:
FIXED RATE(payments stay the same for a fixed period of time – no matter what happens to interest rates.
VARIABLE RATE (your payments will increase when the Bank of England interest rate rises or decrease when the rate falls.)
Over 3/4 know when their mortgage ends
75% know how much they owe on their mortgage
BUT THE BAD NEWS...
Just 36% know the current loan-to-value ratio of their mortgage
Only 1/2 of people are certain of the interest rate of their mortgage
At least 1 in 5 don’t change their mortgage – meaning they’re potentially missing out on better deals
WHY DOES THIS MATTER?
A 0.25% RISE interest rate on the estimated average mortgage of £113,459 would cost an extra £23.66 a month - that’s £283.92 a year*
*Based on an estimated outstanding mortgage of £113,549 using data from The Money Charity Debt Statistics January 2014 Edition.
WHAT CAN WE DO?
1. FOLLOW THE NEWS for anticipated Bank of England rate rises
2. FIXED OR VARIABLE prepare for mortgage milestones (mortgage milestones include rate changes,discount rates drop off, end of fixed rate).
3.DON’T BE CAUGHT OUT by nasty surprises on your bank statement.
4. BE PROACTIVE Planning is the key to responsible mortgage management.
TODAY. TOMORROW. TOGETHER.