Homeowners need to have a better understanding of their mortgage products, in the view of one expert.

Many property buyers have stated that they anticipate interest rates to rise in the coming month but they do not have any idea of how such events would affect their mortgage payments, according to Mary Graham from the Consumer Financial Education Body (CFEB).

The regional manager explained that consumers should find the key facts sheet that they were given when they took out the loan to note the rate that they are currently paying.

Ms Graham also recommended people who are entering into the last six months of their product to begin looking for a replacement, as it can take some time to finalise a new deal.

Recent research by the CFEB found that around one in ten mortgage holders do not know how much they are paying back off the loan each month, while 15 per cent are unaware of what type of product they hold.

Written by Fiona Mayers

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