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

Homeowners missing out on £3k of savings

0
Written by:
23/11/2016
Just a quarter of British mortgage borrowers have ever switched lender in search of a better deal, according to research.

The study of more than 4,000 people by YouGov, on behalf of online mortgage broker Trussle, found that mortgage holders were more than twice as likely to have switched energy provider than mortgage lender.

While switching energy provider can save consumers around £200 a year, shopping around for a better mortgage deal can save the average UK household around £2,800.

Lenders have been slashing mortgage rates since the Bank of England cut the base rate for the first time in seven years in August, to 0.25%.

The move was designed to put more money in the pocket of consumers, but a staggering 94% of people surveyed have not considered switching to a better deal since the base rate was lowered.

Respondents were far more likely to have switched car insurer or mobile phone provider than mortgage lender.

Excuses

One in five borrowers thought the process would be too much hassle, while 14% claimed it was too complicated. Around one in seven thought they’d be penalised for switching and 7% said they wanted to stay loyal to their lender.

Ishaan Malhi, chief executive and founder of Trussle, said: “It’s shocking that almost three quarters of mortgage borrowers have never switched provider in search of a better deal. Especially as households across the UK are throwing away thousands of pounds every year by failing to take advantage of the best rates on the market.

“Part of the problem is clearly a lack of awareness, but many borrowers are simply reluctant to face the ordeal of switching. However, mortgage rates have fallen to record lows, and technology is making switching mortgages easier than ever.”

 

Related Posts

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.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

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