A survey, completed not so long ago, detected that almost three quarters of residents of the United Kingdom do not really know how important 1 percent can be in connection with their mortgages repayments. The results are built on a five-year mortgage deal with a fixed rate. Thus, it has been discovered that only one percentage difference is enough to influence the mortgages by more than two thousand pounds.
The survey was conducted at two different rates - one was 5.6% and the second constituted 6.6%. Almost one forth of those questioned believed that the difference between the two would vary from several hundreds to a couple of thousands pounds.
Almost the equal number of the questioned was not aware of the difference at all. A quarter stated the difference correctly. Furthermore, the survey proved that male respondents were more likely to give a correct figure than female ones. The same can be said about the answers of different age groups - younger generation gave less correct estimates than elders.
The results of this survey demonstrate just how many people do not realize what kind of effect is produced by only one percent difference in mortgage, and consequently, how much money may potentially be spent in vain by owners of UK homes. This condition is sure to get worse during the holidays when people's lives get busier and they do not want to stop and think where they could and should search for better mortgage rates.
As it is true for any kind of loan or credit, you should always take pains to thoroughly examine and evaluate your current financial situation, taking into account any unpredicted changes prior to submitting an application. Therefore, if you are after a mortgage in the market of credit, be sure to take time and do your best to shop around and compare all the various offers, because a thorough research is not only advisable - it is absolutely vital.
