Average homeowner pays £13,596 for remortgages

The average homeowner is likely to pay £13,596 in remortgage fees over the course of their lifetime, Abbey has claimed.

The bank estimates that the average homeowner remortgages 12 times at an average cost of £1,100 every time ñ money that could be spent on paying off the loan.

“Remortgaging can save a borrower a significant amount of money in monthly mortgage payments,” said head of mortgages at Abbey, Jeff Scott.

“But it is important to consider all the fees and charges involved, not just the headline mortgage rate.

“The average cost of remortgaging could be £1,100, so a new rate would have to be more than 0.8 per cent cheaper over two years in order to balance out that cost.”

Taking out a lifetime tracker deal would be an obvious solution to the problem, offering the best mortgage deal over the course of a loan, as would finding a deal with free fees.

Abbey took the occasion to note that its fee-free range offers a two year fixed rate at 5.70 per cent and a two year tracker at 5.19 per cent.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *