Economics and the family budget play a bigger part in today’s world than ever before. Families are constantly attempting to find ways to save money and put back savings as a way to protect their pension years. Monthly mortgage payments are a big part of the family budget and outgoings. It often accounts for more than 50% of the family income which makes affording life necessities and saving quite a challenge. Interest rates play an important role in what comprises a monthly mortgage payment. Although this has always been true, a recent study discovered many property owners do not actually know the interest rate they are paying on lending.

The research was conducted by Which? Mortgage Advisors and included 3,500 respondents who were also borrowers. The research was conducted in the month of June this year.

The response was surprising and concluded 33% of home owners with mortgage lending did not know the interest rate they were paying on their loans. Another surprising piece of data also surfaced. Another 44% could only guess at the rate they were paying on the mortgage loans.

House owners living in London and the youth were the most aware of interest rate information on their mortgage lending. Eight out of ten Londoners could guess their interest rate with a great deal of accuracy or at least approximate their rates.

Interest rates are quite an important part of the lending game. They have major influence of the amount of payback for every home owner. That is why remortgage is so important to those coming to the maturity of their current term in lending. A lower interest rate has the potential to result in a mortgage payment which is hundreds of pounds lower than their previous payment amount.