Billions of Pounds Are Being "wasted" Every Year BY Homeowners.

1st July 2004

T. Wyn Jones

Billions of pounds are being "wasted" every year by homeowners who fail to switch their mortgages to more competitive deals.

It is reported that British homeowners could collectively be £7.5bn better off if they looked into finding the best deal in the market place as opposed to going “with the flow” and accepting what their current lenders deem to offer.

Apparently only 62% of homeowners have re-mortgaged to a better deal during the past three years despite significant falls in interest rates in that period. Even with the recent interest rate rises there are excellent offers available be they variable or fixed rate - or so a noted mortgage adviser states.

Examples of cost savings given are: -

homeowners with an average outstanding mortgage of £53,220 could save £549 a year or £49.54 a month by switching from an average mortgage rate to the best one on the market, or

people with larger mortgages of say £100,000 or £150,000 could make savings of £1,117 and £1,675 respectively.

Apparently more than half of the respondents to the questionnaire who had not changed their home loan said they were aware that they could save money if they switched to a more competitive deal but: -

Approximately 31% said they did not need to make the savings
8% said they had not got round to it, and
6% said they thought it was too much trouble.

But the fact remains, re-mortgaging is not complicated and there are considerable savings to be made. Homeowners have never been in a better position to get the best deal on their borrowings, as the market competition for house loans is fierce.

So take some time out and look at your financial position. Have a word with an independent financial advisor or have a browse on one of the numerous web sites dedicated to comparing mortgage rates and finding the best deals available and see what the market has to offer.

If you are not tied in to your current mortgage it is probable that there will be savings to be made.

For further information on Property Matters Wyn can be contacted on Tel 07702 722905 or by e-mail on wyn@mccartneys.co.uk