Research from online mortgage broker Trussle, noted that a typical homeowner stuck on an expensive standard variable rate (SVR) averaging 4.63% could save a total of £3,500 a year by switching to a market leading fixed rate of 1.39%.

Time to switch?

But just 6% have considered switching to a better rate since the Bank of England cut the Base Rate to 0.25% in August.

This is despite the fact that only a third (36%) of borrowers said they were content with what they were paying. When asked what had stopped them from switching, one in five (20%) said the process would be too much hassle, while 14% said that it all seemed too complicated.

Ishaan Malhi, CEO of Trussle said: “The mortgage sector is shrouded in a level of complexity and jargon that continues to discourage borrowers from acting swiftly to secure a better deal. The Base Rate is the most significant factor affecting mortgage rates, so it’s a shame that so few understand its effect on the most important financial commitment of their life.

“The industry has a role to play in demystifying mortgages for consumers, educating borrowers to make mortgages more accessible, but it’s vital that borrowers are clued up about when and how they should switch to a better rate, especially since today’s rates are as low as they’ve ever been.”