Want to save £439 a year? Switch your mortgage
Over 70% of homeowners have not considered remortgaging their property – despite significant savings available for more than a quarter of Brits, according to Moneysupermarket.com.
The price comparison site said that the average amount saved by remortgaging is £439, totalling £3.4 billion nationwide.
Of the three in five (58.6%) borrowers across the UK on a fixed term deal, one in six (16.6%) has no idea what will happen to their repayments once their fixed term period comes to an end.
The figures are particularly concerning for 18-24-year olds, almost four in five (77.7%) of whom are on fixed term deals, with 20% unsure of their repayments once the fixed term ends.
Significant savings possible
Significant savings are possible by switching your mortgage, but Moneysupermarket found that over eight million (72.6%) borrowers across the country have never been contacted by their provider with an offer of an updated deal.
Even with the potential of interest rates rising later this year, a third (33.3%) of homeowners in the 18-24 age bracket said it has not crossed their mind to switch their mortgage to a fixed rate deal.
Sally Francis-Miles, money expert at MoneySuperMarket said: “The UK mortgage market is worth £1.3 trillion so if even a quarter of those with a mortgage can save a few hundred pounds each, that’s a drastic amount.
“As with most financial products, the onus is on the consumer to search for a better deal. For most people, a mortgage is the biggest outlay they have and the largest amount of money they will ever borrow. As a result, even a slight change in a deal can mean saving hundreds a year, or thousands over the lifetime of the mortgage, even after factoring in arrangement, legal and valuation fees.
“There are many tools online to look at available deals, and remortgaging is far simpler than getting a mortgage when buying or selling, especially if you’re able to switch to a better deal with your existing provider.”