Homeowners could save an average of over £2,000* by remortgaging onto a fixed-rate product at today’s rates, according to research by TSB. This is the equivalent of £169 per month over two years.
The research found that for 84% of homeowners, their mortgage is their biggest monthly outgoing, yet 29% aren’t aware of how much they pay in interest each month.
Some homeowners are putting off remortgaging, with more than half (51%) saying they are happy with their current rate. 16% think there are ‘unnecessary fees involved’ with remortgaging, while 15% think they cannot remortgage because of early repayment charges. A quarter (25%) of homeowners say they would find the task too stressful or daunting (12%).
Aaron Strutt, product director at Trinity Financial, says: “For many borrowers it is relativity stress-free and simple process to remortgage onto a cheaper deal. A good broker will be able to check your overall situation and confirm if you could extend your mortgage term, switch to interest-only, lock into a five-year fix or whether you can release some of the equity from your property to purchase a buy-to-let or fund home improvements.
“It is important to make sure that you are not paying more than necessary because many of the lenders are offering two-year fixed rates around 1.3% and five-year fixes around 1.4% to homeowners with equity in their property.”
TSB’s research was conducted in December 2020 by Opinium Research and is based on a survey of 2,000 homeowners with a mortgage in the UK.
*The potential mortgage savings are for the first two-year period only and are calculated using the following representative example: For a repayment mortgage of £139,043 plus a £995 product fee added to the loan over a 22-year term, you will make 24 monthly repayments of £612.76 at 1.34% fixed until 28 February 2023.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation