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More than a quarter of mortgage borrowers don't know their mortgage rate – this is very dangerous because your mortgage is the most important debt you have and you should always be on top of it.

According to the Post Office, 28% of all mortgage borrowers in the UK do not know the rate of interest at which they are currently repaying their mortgage. As a result, many people are just assuming that SVRs are the lowest rate around because the Bank of England base rate is at 0.5%, but that isn't necessarily the case – you need to speak to a mortgage adviser to find out the truth.

Over a third of borrowers are currently repaying their mortgage at their lender's SVR, and nearly a third of these are assuming that their SVR is the best rate for them. In reality there could be a much lower rate available elsewhere.

Marco Hughes, personal lending director at the Post Office says: "Although it might seem that staying on your current SVR is the easiest thing to do, you are much more vulnerable to interest rate rises. Some providers have increased their SVRs quite significantly even though the base rate has not moved and as a result many borrowers are seeing their monthly mortgage repayments increase more quickly than they thought."

The only way you can be fully up to speed with your mortgage and the mortgage market in general is by talking to a mortgage adviser. They will be able to assess your circumstances, your current loan and your ability to get a cheaper mortgage suited better to your needs.

Hughes says: "If you're thinking about switching mortgage, now is the best time to do it, before rates rise further. With many SVRs at or above 4% there are already better deals to be had out there. Switching mortgage does not have to be a stressful experience and spending a bit of time searching and comparing deals could save you a significant amount of money in the long term."

SOURCE: Post Office, 03/03/10

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It might seem like a hassle to shop round for new financial products when yours seem to be working perfectly well but not many people know that you can save thousands by finding a better deal.

In fact, according to moneysupermarket.com, over £3,450 is up for grabs for households who make the switch to the best financial products over the next year.

Clare Francis, site editor at moneysupermarket.com, says: "There are some really easy savings to be made, just by spending half an hour reviewing where you're at financially. It's easy to be complacent but some rates on products change quite regularly so literally, it really does pay to be vigilant."

Mortgages account for the biggest single financial commitment you are ever likely to make so it is vital homeowners stay on top of the game and ensure they really are getting the best deal possible. This is even more crucial in an environment where rates are constantly on the move.

Over the last month or so there has been many standard variable rates increases while rates for new borrowers fell and more higher loan to value mortgages became available. Also, with the Bank of England base rate at an all time low, and only likely to increase, now may be the time to consider a longer term fixed rate mortgage.

The website says the average SVR rate is 4.69% right now, so moving from that to a lower rate of 3%, for example, on a £200,000 mortgage would be a saving of more than £2000 alone.

For those with high level of savings it may also be a good time to consider an offset mortgage to make best use of all your capital. Also, for those who have struggled with a sub-prime mortgage, now might be the time to see whether you could get hold of a more manageable deal.

Whatever your circumstances shopping around for the best mortgage and keeping a close eye on mortgage rates throughout the year is advisable to ensure you get the best deal.

SOURCE: Moneysupermarket.com, 01/03/10

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If you were recently offered a mortgage by your bank, resist its charms and talk to a mortgage adviser first – you may find that there are much better mortgages available elsewhere.

It's all part of the banking sales process – you come in to pay in some money and they ask you whether you want to save some money, whether you want an ISA or they may even ask you about your home loan. There is nothing wrong with this and for some people, the loan offered to them is the best deal they could get.

But can you be sure that the mortgage your bank says you should get is the best mortgage for you? There are thousands of mortgages available to UK borrowers from a host of mortgage lenders – for your bank to have the single best deal for you is unlikely.

So if you have been offered one of its mortgages, talk to a mortgage adviser first. Show them what you have been offered and then let them search for you amongst all the UK lenders. A mortgage lender will go through your financial history and will ask you a million and one questions about your life and your needs. Then they will look at the whole of the mortgage market to find out what you could be offered.

It might be that your bank's offer is the best you are going to get, and a mortgage adviser is legally obliged to tell you so. But it is much more likely that there is a better mortgage out there for you that may costs hundreds of pounds less than your bank's. So don't take your bank's word for it, go to a professional and see for yourself.

To keep up with the latest news and comments on the mortgage market please visit the Mortgage Broker Blog.

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Mortgage lenders offering fixed-rate loans with a 90% loan to value or higher nearly doubled in the last 12 months – while numbers are still lower than they were a few years ago, more people may now have the chance to get hold of a mortgage.

New research from MoneyExpert.com shows that there are 147 fixed-rate products available for those wishing to borrow 90% or more of the value of their property. This represents an 88% increase on the 78 products available this time last year.

When it comes to the high LTV fixed-rate mortgage market, things are getting much better. The website says there has been a rise of 46% in terms of products available – the average LTV on a fixed-rate mortgage is now 76.8%, up from 75.7% 12 months ago.

But borrowers looking for a high LTV on a variable rate mortgage will have fewer options. The number of high LTV products of 90% or above has shown just a modest increase from 43 in 2009 to 51 now.

Pierre Williams, head of research at MoneyExpert.com, says: “For those looking to borrow a sizeable percentage of the value of their home this is clearly good news. Lenders have been risk averse in the past year and have shied away from high LTVs. Measured optimism over the housing market, though, seems to be encouraging higher value lending.

“It’ll be interesting to see how other provides react in the coming months. We’re some way off the flurry of 100% deals of previous years and that is a good thing to some extent but it seems that door is opening up.”

Of course, borrowers relying on higher LTV products will face paying higher rates on the deal – the average fixed-rate mortgage product is currently at 5.4%, well below the 6.3% average for deals with an LTV of 90% of higher. But the important thing is that there are products available and there is hope for those who have spent the last two years languishing in mortgage purgatory.

SOURCE: Moneyexpert,com, 22/02/10

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The average British household would run out of money in less than two weeks if a wage earner fell critically ill or died – how long would you be able to keep up your mortgage without the income you currently enjoy?

New research from Aviva has shown that the average British household may only have enough cash to cover bills for 14 days if they or their partner fell critically ill or died. One in four British households say they could only access £100 without further borrowing.

The research shows that without further borrowing, the average British household could get their hands on only £914 of disposable cash, less than two weeks of the average weekly household expenditure of £471 – Aviva says this is just a tiny percentage of an insurance payout that a well-covered person or their family is likely to receive should they fall ill or die.

By taking out critical illness cover or life insurance you can be safe in the knowledge that you will be able to keep up with all your bills, but most importantly your mortgage – it is the biggest bill most people have to pay each month and it is the most crucial if you want your family to have a roof over their heads.

The Aviva research shows that, should the worst happen, Britons are drastically under-insured with only 37% of households covered by life insurance or critical illness cover.

But at the same time the majority of Britons consider it their personal responsibility to cover any loss of income, should the worst happen. So these conflicting number simply don't not make sense – the best way to cover your liabilities is to take out some sensible insurance cover. A mortgage broker can help – as well as offering home loans they are also qualified to offer advice on a range of protection products.

Louise Colley, head of protection for Aviva, says: "When it comes to critical illness or death, money worries are the last thing a family would need at such a distressing time, so we would encourage everyone to take the time to consider life and critical illness cover to make sure they have adequate protection in place."

SOURCE: Aviva, 24/02/10

To keep up with the latest news and comments on the mortgage market please visit the Mortgage Broker Blog.