British homeowners could save an average of £169 a month by remortgaging to a fixed-rate deal at today’s low rates, according to research1. This figure equates to an annual saving of over £2,000, yet almost nine in 10 borrowers haven’t thought about switching lenders.
In March 2020, at the start of the pandemic, the Bank of England base rate was cut to a record low of 0.1% in a bid to reduce the pandemic’s impact on the economy. The move hit savers hard, but homeowners have potentially stood to benefit.
Embarking on a cost-cutting exercise
As the economic repercussions of the pandemic have continued to be felt, just under three-quarters (70%) of homeowners began 2021 with the aim of reducing spending and getting their finances into good order for the year ahead.
However, while smaller cost-cutting exercises such as switching energy provider (33%), reducing takeaways (60%), and eliminating takeaway coffees (29%) have featured high on the list, only one in 10 say they have considered remortgaging as a means of reducing expenses. This is despite 84% saying their mortgage is their biggest monthly outgoing.
Busting remortgage myths
The research highlights several reasons why homeowners are hesitant about switching to a new mortgage deal, including:
‘I’m content with my current rate’– Over half of respondents claim they are already happy with the current rate they are paying. Yet switching to a more competitive rate could save around £2,000 a year, so considering your options seems sensible.
‘I want to avoid fees’- A further 16% cite concerns about ‘unnecessary fees’ and 15% believe they cannot remortgage due to Early Repayment Charges (ERC). We can help you fully understand the costs involved and assess whether it’s more cost-effective to pay an ERC to leave your current mortgage deal early and secure a lower rate, or not.
‘It’s too stressful’- A quarter of homeowners believe the process of remortgaging to be daunting or too stressful (12%). However, we can help you find the most suitable mortgage for your needs and take you through the process one step at a time. We can liaise with your lender on your behalf.
‘It takes too long and not sure where to start’ – Around 14% of homeowners say the remortgaging process takes too long. We understand that navigating your way through the mortgage maze can feel overwhelming, but we can help guide you and drastically reduce the time it takes to switch to a new deal.
Time well spent
If you’re interested in considering your options when it comes to remortgaging, don’t hesitate to get in touch to see how we can help. Spending a little time with us could potentially save you money on what’s likely to be your largest monthly outgoing.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Catch up on our other blog posts:
Are you protected from canine chaos?
If you have a dog, you’ll know that they can be cute, loving… and a whole heap of trouble! Aviva1 recently backed this up when it revealed some of the company’s more noteworthy pet-related claims. From the pooch who turned on a tap and flooded his owners’...
Save by living just outside hotspots
By choosing to live just outside highly sought-after locations, analysis has shown that homebuyers could benefit from savings of up to 55%1, without forsaking their preferred location. Average savings come in at around 34% when locating five or ten minutes from a...
The money taboo – it’s good to talk it out
Are you worried about your finances? If so, you’re certainly not alone. According to a recent survey, 90% of households are worried about rising prices1. Financial worries can cause a great deal of stress and anxiety. In fact, nearly one in five people say they have...
Wellbeing benefits of income protection
Income protection insurance can be a cost-effective way of protecting yourself financially if you are unable to work due to illness or injury. What many people don’t realise is that taking out an income protection policy can have benefits beyond the financial....
Plan to avoid home buying stress
Job interview, driving test, family life… the list of life’s stresses is, unfortunately, long and varied. New research has revealed, however, that buying a home comes out on top. Can’t Buy Me Stress 37% of recent UK homebuyers said that buying a house was one...
Seeing protection in a new light
Nobody wants to think something bad happening to them. Perhaps it’s why so many people shy away from protection insurance – after all, it’s all too easy to think ‘it’ll never happen to me’. Unfortunately, ‘it’ can and does happen, whether ‘it’ be injury,...
Back to normal? Property update
Amid the backdrop of war in Ukraine and the spiralling cost of living, unpredictability is at the forefront of many people’s lives right now. The outlook for the housing and mortgage markets is no less uncertain. Taking a step back, however, it is possible to...
Sandbanks dream home
This month we were pleased to help clients buy their dream home in beautiful Sandbanks. With one eye on retirement they wanted to live in style, and we were able to use their company profits in order to maximise their mortgage borrowing potential. This enabled them to...
Equity Release for home improvements in Redditch
We were so pleased to receive a mortgage offer for an equity release client this month. She came to us asking for help in obtaining funds because her boiler had packed in, leaving her with no hot water or heating in the middle of winter. Not ideal for anyone, let...
Rental market boom likely
Historically, a decline in property sales has also led to a boost in private rental market stock. This is based on research1 looking at both sales and rental markets during the 2008-09 financial crisis and recent pandemic downturn. In 2008 property sales volumes...
(Your home may be repossessed if you do not keep up repayments on your mortgage)
We charge a fee for arranging and advising you on the mortgage. The fee will be dependent on your circumstances but will not exceed £499. (Our typical fee is £299.)
For Lifetime Mortgages/Equity Release the fee will be £799.
Our mission is to provide honest mortgage advice, whilst helping you save money.
Get in contact
Or call —02380224925