Confused borrowers

Friday 29 May 1998 18:02 EDT
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More than 40 per cent of mortgage borrowers - almost seven million people - currently pay off their loan at the standard variable rate, typically the highest rate on offer from lenders.

Most do so because they are confused about the different types of mortgage loans available - including fixed, capped and discounted mortgages, according to a poll by the Mortgage Guild, a marketing group for independent home loan brokers.

About half the public is also put off switching to a cheaper mortgage because it does not want to start a long-term mortgage "all over again". Yet some 48 per cent of those polled would feel angry if they found out that their existing lender is offering better deals to new borrowers than to them.

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