As the ‘cash crunch’ bites UK householders are finding they have less and less money to spend every month. One way to help ease the burden is by remortgaging.
But, says a recent Barclays report, 58% of homeowners only ever remortgage when they move house, which could be never. The average time people remain in one house is 16 years. So after taking out a mortgage with an initial deal many people could be paying their lender’s standard variable rate (SVR) when they could be on a better deal.
This means that homeowners in the UK are paying a collective Â£346 million a year more than they need to. Some homeowners could remortgage and save themselves as much as Â£1,200 a year.
The Barclays research shows that many people believe they would save just Â£10 a month by remortgaging, but they would change if they could save Â£50 a month.
Head of mortgages at Barclays, Andy Gray, said ‘The fact that around six in 10 homeowners have never changed their mortgage outside of moving a house, suggests that they simply don’t realise the levels of savings to be had by remortgaging.’
People seem willing to shop around to save the odd buck or two on home and motor insurance as well as utility bills but where one of the largest outgoings, the mortgage, is concerned many people seem to overlook the potential for savings.
There are many comparison sites out there for you to take a look at or you could just speak to your lender (although they will normally only have a limited offering).
If you have a mortgage you will have household insurance may well also have life insurance all of which add to the monthly bills.
A good way of saving money is to seek the advice of a whole of market mortgage and insurance adviser or an independent financial adviser (IFA). You might find you can save yourself a lot of money.
Surely it’s worth asking the question?
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