We are always preaching about the importance of switching providers, whether it be for energy or a mortgage, and in a lot of instances people have benefited hugely with regards annual savings.
So it came as a surprise to hear that well over half of UK homeowners are missing out by sticking with the same mortgage provider for a number of years.
YouGov and mortgage broker company Trussle said that an average UK household could make a saving of nearly £3000 a year by being selective about the mortgage that they have.
One of the reasons for people being reluctant to change their mortgage can only be put down to the fact that it can be a time-consuming process. It isn’t simply a case of changing your mortgage provider, there are lots of added extras to factor into a decision and also a lot of paperwork to sift through so it is easy to understand why it would put people off changing their mortgage – it certainly isn’t as straight forward as switching mobile phone provider for example.
If you want to save yourself and your family thousands a year, however, it is certainly time well spent.
The first thing you should do is go online and use comparison sites to compare and contrast mortgage deals. There are some very competitive deals to be had - but always bear in mind that the deal has to be good for your circumstances. Just because payments are reduced doesn’t necessarily mean the ins and outs of the mortgage will suit you.
Others in the industry have also admitted they too are perplexed that more people are not changing their provider. David Hollingworth from mortgage broker London and Country admitted: “It’s astonishing that more borrowers are not actively taking advantage of the ultra low rates available at the moment.
'Fixed rates are at record lows offering borrowers the opportunity to not only slash their current mortgage rate but also to protect against any future uncertainty or higher interest rates.'
“The range of options is also much improved, as are the rates available to those with lower equity levels. Those with 10 per cent equity can find fixed rates just below 2 per cent, well below standard variable rates.”
He added: “The range of options is also much improved, as are the rates available to those with lower equity levels. Those with 10 per cent equity can find fixed rates just below 2 per cent, well below standard variable rates.”