You are here: Home - Mortgages - Remortgage - News -

Brits unaware of benefits of remortgaging

Written by: Owain Thomas
Only one in three Brits associate remortgaging with securing a better rate on their mortgage.

However, almost half (47%) associate remortgaging with taking on more debt (35%), home renovations (7%) or failing to meet existing repayments (5%).

Research conducted by YouGov on behalf of Habito found that UK borrowers could be missing out because of confusion around the subject. As a result, the broker warned that many borrowers could be surprised by rising interest rates.

The survey also revealed that a significant proportion of  mortgage borrowers had not changed their mortgage product for some time. Two fifths (39%) said they had not changed their mortgage product in the last five years, with 13% having never done so.

In total 4,370 adults were quizzed as part of the study, 1,084 had a mortgage.

Reasons given for not remortgaging or switching a product in the last three years were because borrowers thought they could not save money (20%), that the process was too complicated and stressful (9%) and the application process is too time consuming (5%).

Left in the dark

Habito CEO, Daniel Hegarty, said: “Our research shows just how badly borrowers have been left in the dark about the benefits of remortgaging, leading many to pay vastly over the odds, at a time when disposable incomes are falling.”

He added: “Should the Bank of England raise rates before the end of this year, monthly repayments will rise for millions of borrowers on tracker or variable rate mortgages.

“This will be the first time in a decade that borrowing costs have gone up. We have already seen a price hike from a number of lenders in anticipation of this, a trend which will only continue.

“Not only are millions of homeowners’ monthly payments expected to go up, but it is becoming more expensive to remortgage to a cheaper fixed rate, as lenders start to increase the costs of their cheapest products.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week