Hard-pressed Brits urged to switch mortgage to save money

Fri, 11 Nov 2011
 
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A large number of UK homeowners are missing out on huge potential savings by failing to look for a new mortgage deal, new research has revealed.

A survey by Barclays found that 58 per cent of Brits who own their house have never remortgaged unless when moving property, despite 92 per cent of homeowners looking to cut down their monthly outgoings to cope with rising living costs.

With the average homeowner living in their property for at least 16 years, it suggests that they could be missing out on potential savings of £1,200 a year by remortgaging .

Barclays says that people are avoiding looking for new deals as they unaware of just how much they could save by swapping their mortgage, with many believing that it would only reduce their expenses by an average of £10 a month.

However, their research showed that nearly three-quarter (74 per cent) of British homeowners would consider it if they could save up to £50 a month.

Andy Gray, head of mortgages at Barclays, 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 ."

"As monthly outgoings rise, and Brits fight to cut their costs, it's important that they consider addressing their mortgage ."