Confusion over mortgages rife says Charcol

Only 11% of mortgage borrowers pick a mortgage based on the headline rate while a further 29% don’t know which rate to base their decision on, it claims. Ray Boulger, senior technical manager at John Charcol, says such findings are very worrying as they suggest a year after statutory mortgage regulation a huge number of borrowers are in danger of buying the wrong product. “If the 33% of borrowers who base their decision primarily on the annual percentage rate (APR) plan to keep their mortgage for its full term and consequently in most cases stay on an uncompetitive rate after their initi...