Brits can’t tell the difference between mortgage types

It turns out that 92 per cent of British consumers who are going to obtain a mortgage in 2011 don't know the difference between the types of mortgages available on the market.

The recent study carried out by First Direct shows that only 8 per cent of respondents know how the major mortgage types work, while 11 per cent says they have no idea how mortgages work.

What is even more worrying, only 26 per cent of current mortgage borrowers said they grasped the difference fully.

Over 2,000 people who participated in this survey were asked whether they could explain the difference between fixed rates, variable deals and tracker mortgages.
 


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.