Values, mortgages and interest rates - what homeowners in Exeter don’t know about the local property market

New research released this week by Zoopla, the UK’s most comprehensive property destination, reveals that almost a quarter (24%) of Exeter homeowners don’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.

Mortgage oblivion

The research, which quizzed 200 Exeter residents about the city’s property market, also found that one in ten (14%) 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 Exeter are currently looking for a new home, meaning now is an important time for the people of Exeter 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 knowledge of average local property prices is low in Exeter. Over two thirds (68%) of those surveyed believed the average property price in the city is more than £250,000. According to Zoopla, the current average property price in Exeter is £247,100.

The survey also found a quarter (25%) of homeowners are unaware of the value of their own property.

Space is top of the agenda

The research also highlights Exeter homeowners’ desire for more space, as more than a third (37%) are looking for a larger home or a home with a specific feature like a garden or garage.

The need for space is further illustrated by data from Zoopla in early 2021 that revealed demand for extra family living spaces increased with searches for ‘gardens’ topping the list of Zoopla search terms for buyers in Exeter in 2020.

Eco Living

The survey also asked Exeter homeowners about their green credentials and found almost all (91%) of the respondents said the efficiency of their home is important to them. 

Just under half (45%) said they are keen to be as environmentally friendly as possible and over two fifths (46%) said saving money is the main motivation behind going green.

While homeowners in Exeter are environmentally conscious, Zoopla’s research found more than one in three (36%) homeowners aren’t aware of the government’s Green Homes Grant and almost three quarters (72%) don’t know how much the grant is worth. 

Under the Government’s Green Homes Grant, homeowners are entitled to claim up to two-thirds of the bill for certain types of work undertaken to improve their property’s energy efficiency, up to a maximum spend of £5,000.

The scheme will also see the Government foot the bill for low-income households, up to a maximum spend of £10,000. Data from Zoopla shows that 200,000 homes in England alone have an EPC rating of G, the lowest score on the energy efficiency scale. This shows the need for homeowners to improve efficiency and reduce costs.

In addition to cost savings, investing in energy efficient changes could improve mortgage rates. Green mortgages are available with some lenders, offering discounts on the usual interest rate if you buy a home with a better EPC rating.

Knowledge is key 

Tom Parker, Consumer Spokesperson at Zoopla comments: “Homeowners in Exeter could be missing crucial savings on their next big move by not understanding their current mortgage deal, interest rates or local property prices. By setting aside some time to brush up on property knowledge, homeowners can shop around and make sure they are getting the best deal.”

Roger Wilkinson, Managing Director at Wilkinson Grant & Co, an estate agency in Exeter, added: “Mortgages, house prices and interest rates can be confusing for homeowners, but being in the know about your own situation can really make a difference when it’s time to move or improve. Luckily for local homeowners, there’s a lot of free help and tips available, like the tools on Zoopla, to help build knowledge and answer tricky questions.”