Borrowers can't keep up with increasing mortgage rates, say Post Office

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Borrowers can't keep up with increasing mortgage rates, say Post Office

Wed 3rd Mar 2010

Post Office personal lending director Marco Hughes, said that continuing to pay on a standard variable rate (SVR) makes consumers more vulnerable to interest rises and advised they explore the market for new offers in order to protect themselves.

He added: "Some providers have increased their SVRs quite significantly even though the Bank of England base rate has not moved."

Mortgage rates hit a record of 15.4 per cent this year and Mr Hughes suggested that people should change their lender quickly to save money spent over a long term period.

A new report by the Post Office revealed that over 3 million borrowers do not know the rate of interest at which they are repaying their mortgage even though the base rate is at 1.5 per cent, which is the lowest it has ever been.

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