Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from firstname.lastname@example.org. Be Scamsmart.
When you come to the end of a fixed rate mortgage deal, do you revert to your lender's standard variable rate (SVR), or remortgage to another fixed rate? Ideally it should be the latter, yet research from mortgage broker Trussle has found that this may not be the case, with people being far more likely to switch energy provider than mortgage deal, even though it could save them thousands of pounds.
The figures, based on a study by YouGov, show that just 28% of those with a mortgage have switched provider to secure a more favourable deal at the end of a fixed rate period, compared with 50% who've switched energy. This is despite the fact that those sitting on their lender's SVR could save an average of £3,500 per year by switching to a market-leading fixed rate mortgage, while the average saving on offer by switching energy provider is a far less substantial £200.
Ishaan Malhi, CEO of Trussle, said it was a "worry" that "the majority of homeowners across the country have never switched mortgage provider to secure a better deal", even with the base rate cut in August and the record low rates that followed. Remortgaging may be slowly starting to edge up – recent figures from LMS show that 2016 as a whole was the best year for remortgaging since 2009 – but "these people still represent a small fraction of those eligible to switch to a more suitable deal," said Ishaan.
"Much of the complexity and hassle has been eliminated from the switching process as lenders and brokers start to embrace technology, which makes it an ideal time for the remaining three million UK homeowners paying their lender's Standard Variable Rate to start thinking about switching to a more suitable mortgage deal."
Given the savings that can be made, what are you waiting for? Now's a great time to get in on the action, and with our own figures further highlighting the benefits of remortgaging – if you're coming to the end of a two-year fixed rate deal, you could see a rate rise of 1.42% if you reverted to your lender's SVR, or a rate drop of 0.81% if you remortgage to the current two-year average mortgage rate – it makes sense to see what's out there. Compare the top remortgage deals and see how much lower your repayments could be.
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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.