Hard-up homeowners ignore remortgaging option - Mortgages - News - Moneyfacts

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Hard-up homeowners ignore remortgaging option

Hard-up homeowners ignore remortgaging option

Category: Mortgages

Updated: 07/11/2011
First Published: 07/11/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The majority of homeowners are passing up the chance of cutting the cost of their mortgage, despite making every effort to scrimp and save in other aspects of their life.

New research from Barclays has found that while over nine in ten homeowners are currently trying to reduce their monthly outgoings, almost six in ten admitted they had never changed their mortgage other than when moving house.

Nearly half of those surveyed said they had been spending more time on cost-cutting over the past 12 months.

Indeed, more than three quarters of homeowners have been spending up to three hours a month on reducing their monthly costs.

But while they could potentially enjoy a significant reduction to one of their largest monthly outgoings, people are instead focusing on cutting back spending on takeaways, clothes and using discount vouchers.

The bank said there is a 'clear disconnect with people failing to realise how much they can actually save by swapping their mortgage'.

As people tend to live in their homes for an average of 16 years, it added that they are potentially missing out on years' worth of decreased mortgage payments.

"The fact that around six in 10 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.

"There are an increasing number of good mortgage deals to be had so we are urging homeowners to act now and look at the rate they are paying, to allow them to get more out of their hard earned cash."

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