New research released today by Zoopla, the UK’s most comprehensive property destination, reveals that almost one in three (32%) Brighton homeowners doesn’t know what the interest rate is on their mortgage. This is despite a mortgage being the most significant financial commitment most people will make in their lifetime.
The research, which quizzed 200 Brighton residents about the city’s property market, also found that one in four (24%) homeowners doesn’t know how many years they have left on their current mortgage deal.
Zoopla’s research also reveals that almost three quarters (71%) of homeowners in Brighton are currently looking for a new home, meaning now is an important time for Brightonians to brush up on property knowledge. To help homeowners get a better understanding of payments, properties and percentages, Zoopla has created some top tips:
Research what your current property is valued at using Zoopla’s free online home valuation tool as this will tell you whether your property has risen in value.
Evaluate your monthly debts to prioritise repayments. Home mortgage rates are usually lower than interest rates on other forms of debt, such as credit cards. It could be worth using extra funds to pay down other commitments rather than overpaying on a mortgage.
Keep a close eye on your interest rate if you have an adjustable-rate mortgage, as after the fixed period ends, rates will fluctuate. It’s important to know how rates can adjust each year as you don’t want to be caught out by any changes in your monthly payments, especially large increases.
The price is right
The research also questioned homeowners on knowledge of their own property value, as well as average property prices in the city. The results show that while knowledge of average local property prices is high, some homeowners are in the dark about their own property’s value.
Almost all (90%) respondents correctly placed the average price of a property in Brighton at more than £250,000. The current average property price in Brighton is £407,766, up 5% from January 2020.
However, the survey found a quarter (26%) of homeowners are unaware of the value of their own property.