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Half of borrowers have not reviewed mortgage in three years

Just under half of borrowers, 49%, have not reviewed their mortgage since base was cut to 0.5% three years ago, according to Unbiased.co.uk.

Despite base rate being a record-low since March 2009, 42% of fixed rate borrowers are still paying a rate of 5% or higher, with the average rate for fixed rate borrowers being 4.63%.

The average rate paid by tracker mortgage holders stands at 3.17%.

Unbiased.co.uk says around 56% of borrowers do not have any idea of what rate they pay on their mortgage.

Karen Barrett, chief executive of Unbiased.co.uk, says: “If the recent decision by Halifax and RBS to increase their SVR is an indication of the direction of the market then we will see more increases to the rates that consumers are paying on their mortgages – making it more important than ever for people to shop around for a better deal.”

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  • bobby 6th March 2012 at 3:21 pm

    The only problem is that 8 out of 10 borrowers when they finally decide to consider a change will find they are excluded because of criteria and will be mortgage prisoners for life.

  • Peter Parker 6th March 2012 at 2:59 pm

    This woman loves statistics, she might also like to know that only 62.9% of her eyebrows are still there.

  • Anonymous 6th March 2012 at 2:46 pm

    Even if a borrower on a fixed rate is paying 5% arranged 3 years ago they would have a penalty to repay early, and the rates being offered now are not that great because the low BBR is not being passed on to customers. So say if they had a 5 year fixed at 4.99% with ERC (Early Repayment Charge) reducing from 5% in year 1 gradually to 1% in year 5, they would be looking at a 2% penalty meaning that any new fixed rate would have to be lower that 2.99% to be worthwhile. Given that property values haven’t really increased significantly for most people in the last 3 years, unless they have been fortunate enough to greatly reduce the capital and thus LTV of their mortgage the chances are they can’t save anyway.

    However, there is never any harm in a review to make sure.

  • Anonymous 6th March 2012 at 2:45 pm

    Even if a borrower on a fixed rate is paying 5% arranged 3 years ago they would have a penalty to repay early, and the rates being offered now are not that great because the low BBR is not being passed on to customers. So say if they had a 5 year fixed at 4.99% with ERC (Early Repayment Charge) reducing from 5% in year 1 gradually to 1% in year 5, they would be looking at a 2% penalty meaning that any new fixed rate would have to be lower that 2.99% to be worthwhile. Given that property values haven’t really increased significantly for most people in the last 3 years, unless they have been fortunate enough to greatly reduce the capital and thus LTV of their mortgage the chances are they can’t save anyway.

    However, there is never any harm in a review to make sure.

  • Lee Parker 6th March 2012 at 2:16 pm

    A light news day evidently. Reminds me that 57.83% of all stats are made up.