Many UK Homeowners Don’t Benefit From Changing Mortgages
Recent research carried out into the habits of mortgage payers in the UK has revealed that there are many homeowners that are failing to cash in on potential savings on their mortgages through loyalty to their mortgage provider and in some cases due to apathy.
The study reveals that around one and a half million Brits could be losing out by staying with their existing mortgage providers rather than shopping around to try and find a better deal.
With recent interest rate hikes and with many mortgage payers having taken on a huge loan in order to fund the cost of property purchasing in the UK, the monthly repayment that many of today’s mortgage payers are having to deal with is extortionate. However, the competition between mortgage providers is very stiff, and a number of providers have been offering great deals to consumers that are prepared to switch, but there are many borrowers that have failed to take advantage of this.
According to the data released from the study, around eight percent of homeowners have stayed with the same mortgage provider for over two decades, despite a range of tempting offers from other lenders. Around a third of mortgage payers have stayed with the same lender for around a decade. Although this shows loyalty from the consumer, many could be missing out on some great deals that could save them a small fortune on the repayments on their mortgage.
Eamonn Rice, the Chief Executive of Mform.co.uk stated: "Loyalty is a fine thing but not when it costs you a lot of money. And that is the effect of sticking with one lender forever. There is a lot of choice in the mortgage market and homeowners should take advantage of it."
According to the study those that keep up with the rate changes and offers available from lenders, and switch their mortgage accordingly, could save thousands in total on the cost of their mortgage.
Alisdair Milton
15th December 2006
More Information:
- What Is A Mortgage?
With the price of property ever increasing and no sign of the long awaited bursting bubble of the housing market, we ask what can young first time buyers do to gain their freedom and set up a home of their own in such an expensive arena and what is a mortgage anyway?
- Choosing The Right Mortgage
The market is flooded with different types of mortgages, but how do you know which one is right for you? The decision has to be yours, whether you take advice from an Independent Financial Advisor or do your own research.
- Paying Off Your Mortgage Early
Twenty five years is the average period of a mortgage… Twenty five years is a long time! The dream of many people is to pay off their mortgage early. Can it be done?
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