Homeowners missing out on £3k of savings
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.
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.”