When was the last time you switched mortgage provider? Chances are, it was a while ago – and you may never have even considered it. Indeed, research from mortgage broker Trussle shows that consumers are more than twice as likely to switch energy tariff than mortgage deal, despite the fact that the savings from switching your mortgage can add up to thousands of pounds.
The research found that just 28% of mortgage holders have ever switched provider in search of a better deal, despite the fact that the average UK household pays a whopping £2,800 over the odds every single year by not shopping around. Conversely, 63% of mortgage holders had switched energy provider, and while that's of course the right thing to do – it can save an average of £200 per year, according to Government figures – the benefits are tiny by comparison.
Even the fall in base rate hasn't been enough to encourage switching, with 94% of respondents saying they haven't considered doing so since the rate was lowered. This is despite the fact that the cut has caused average mortgage rates to plummet, with the move having been specifically designed to put more money in the pockets of consumers – but it seems most aren't taking advantage.
The key reason was the fear that the process would be too much hassle (for around 20%), while 14% claimed it was too complicated and 15% thought they'd be penalised. Just 7% said they stayed with their current lender out of loyalty.
Ishaan Malhi of Trussle said it was "shocking" that so many had never switched lender, "especially as households across the UK are throwing away thousands of pounds every year by failing to take advantage of the best rates on the market.
"Part of the problem is clearly a lack of awareness, but many borrowers are simply reluctant to face the ordeal of switching. However, mortgage rates have fallen to record lows, and technology is making switching mortgages easier than ever. Now's the time for borrowers to take charge of the situation."
Now's a great time to consider switching mortgage deal, particularly if you're on your lender's standard variable rate – you could save a small fortune! Compare the top mortgage deals and see how low your repayments could be.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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