With interest rates on home owner loans at a historically low level, where they have been for the past twelve months, there seems to be a reasonable amount of complacency growing amongst borrowers regarding their home owner loan repayment amount and also what rate of interest they are actually paying to their current lender.

New research from Post Office Mortgages has shown that somewhere in the region of 3 million borrowers in the UK have no idea about what rate they are currently paying on their home owner loan or mortgage.

The research found that around 35 per cent of people with a home owner loan are currently on their lenders standard variable rate loan deal, in the assumption that this will be the cheapest loan option for them in the current economic climate and although this may be the case, around one third of these borrowers do not know what rate they are actually paying.

Almost half of those individuals with a standard variable rate home owner loan are aware that they are able to make overpayments on their loan and reduce the balance whilst interest rates are low, yet the majority of these people are not taking advantage of this situation.

Over the course of the past few months, several lenders have increased the standard variable rate on their home owner loan and mortgage products, pushing up repayment levels for many standard rate borrowers.

With the prospect of interest rate rises from the Bank of England on the horizon and a growing number of cheap loan deals entering the market, particularly for remortgage cases, if you are one of the three million people who don’t know what they are paying on their loan at the moment, it could well be in your interests to check the rate and compare it with some of the new deals available on the market.