Mortgage holders paying over the odds

Millions of households are potentially paying over the odds on their mortgage because they are stuck on the wrong deal, according to the latest research from Opinium and L&C.

The research found that just over a third (36%) of homeowners are still on standard variable rate mortgages which are typically higher. Surprisingly, over half (58%) of those questioned have never re-mortgaged to save money.

In addition, the research suggests that that millions of households don’t know the current interest rate of their mortgage, which just adds to the likelihood that they haven’t done their homework to see if they could be on a better deal.

The research also shows that the average pre-tax income for households with a mortgage is £45,141 and households are paying an average of £597 per month – which means for every £6 earned, £1 goes on the mortgage. Perhaps it’s not surprising that two in five (38%) mortgage holders can’t imagine a time not having to pay their mortgage.

Read more about the research here.