Brits could save twice what they think by remortgaging
Brits are underestimating a staggering £3.5bn in possible mortgage savings, according to research from TSB.
The lender said that the potential savings that homeowners could be making are being underestimated by nearly half.
According to a survey conducted among 2,000 homeowners, the average saving they expected to make from remortgaging their property was £49 a month, compared to an actual average of £96 per month, according to the lender. This totals £2,300 across the life of a two-year fixed term on a £100,000 mortgage.
Rush to remortgage
Nearly a third (31%) of eligible homeowners say that are planning to cash in on low interest rates this year, with one in four (25%) of those planning to remortgage in January.
A third (33%) of so-called JAMS (those who are Just About Managing) are planning to remortgage in 2017, with the majority (88%) doing so to free up monthly income, lock in at a fixed rate to better manage their money, or take advantage of the low interest rate environment.
Ian Ramsden, director of mortgages at TSB, said: “Mortgage payments are often the biggest outgoing for many households. By remortgaging, homeowners stand to save up to £96 per month on average, which can make a huge difference to family finances. It could mean being able to afford a family holiday, carry out much needed home renovations, or simply help ease the pressures on household finances each month.”