One in three don't know their mortgage rate

One third of UK mortgage holders don't know what interest rate they are on, new research shows.

This means that than 5 million people in Britain have no idea how much their mortgage is costing them.

Almost one in 10 don't know how long their mortgage term is, or whether it is a fixed or variable rate.

And one in eight don't know whether they have an interest-only or capital repayment mortgage.

The new figures from habito, which claims to be the world’s only digital mortgage broker, reveals a widespread knowledge gap around basic mortgage details.

It said the "pain and complexity of the application process" is primarily to blame, and this lack of knowledge costs consumers an estimated £29 billion a year.

Habito founder Daniel Hegarty said: “For most people, a mortgage is the biggest financial commitment of their lives, yet the application process is opaque, slow and untouched by technology.

“It’s no wonder there is such a widespread lack of awareness among existing mortgage holders and such reluctance to manage their mortgages over the long-term.”

Hegarty said technology has transformed our lives beyond recognition yet the mortgage application process is no different to 30 years ago.

He said that habito has created a way to make the mortgage application process simple and transparent. “We analyse every mortgage from over 100 lenders in seconds and find the best one for each customer. It is a simple, honest and transparent way to find and apply for the right mortgage.”