Seven out of 10 don’t know what mortgage they are on

Seven out of 10 mortgage holding Britons don’t know what kind of mortgage they have, research from Norwich Union reveals.

Brits are “budgeting blind” through the credit crunch despite spending millions of hours researching financial products online.

NU has found that despite 53p in every £1 being spent on financial necessities such as insurance and mortgages 72% don’t know what type of mortgage they have, 67% don’t know what their monthly mortgage payment is and 78% don’t know the interest rate of their mortgage.

The study also revealed that Britons spend 180 million hours each year researching essential financial purchases suggesting that the more time we spend researching our financial purchases, the less we know about what we end up buying.

Alvin Hall, financial commentator, says: “In difficult economic times like today, it’s crucial that each of us understands exactly where every penny of our pound is going. Budgeting blindly or with your head buried in the sand is a high risk strategy.”

But he says there are two barriers keeping people from understanding products.

Hall adds: “The first is the language barrier – the legalese and jargon. The second barrier is emotional – we have preconceived ideas about the complexity of these products and we are spooked before we even start our research.”

Steve Genders, head of web at Norwich Union, says: “It’s clear from the research that the more time we spend researching, the less we know about what we’re buying.

“People need quality – and not necessarily quantity – searches.”