Money News

Half of Brits have never switched mortgage

Wednesday 09 November, 2011

By Martin Fagan

Although many households are curbing spending, 58% fail to save by swapping to a cheaper mortgage deal.

Even though 92% of UK homeowners are currently trying to reduce their monthly outgoings, 58% say they have never remortgaged outside of moving home.

According to research from Barclays , there is a “clear disconnect” with people failing to realise how much they can actually save by swapping their mortgage, even though 74%said if they could save up to £50 a month they would consider doing so.

Over 40% of those surveyedsaid they spent more time on cost-cutting over the past 12 months, with 76% of homeowners spending up to three hours a month on reducing their monthly costs.

While many Brits focus their spending cuts on takeaways, clothes and by using discount vouchers at the checkout, Barclays said householders who fail to remortgage to a cheaper deal are missing out on what could be their biggest savings opportunity.

“The fact that around six in ten homeowners have never changed their mortgage outside of moving house suggests that they simply don't realise the levels of savings to be had by remortgaging,” said Andy Gray, head of mortgages at Barclays.

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

With its research showing homeowners living in their homes for on average over 16 years, Barclays’ says its data shows its range of fixed and tracker rate products could save homeowners a collective £346million over the next two years alone an average of £108.50 a month per household.