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

Brits unaware of benefits of remortgaging

0
Written by: Owain Thomas
06/10/2017
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.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week