Almost 60% of UK homeowners have never changed their mortgage, aside from when moving house.
Despite spending an average of 16 years in each home, many are not shopping around for a cheaper deal which means they are potentially losing out financially.
The UK is currently in cost cutting mode as 92% of people are currently trying to reduce their monthly outgoings. With the rising cost of everyday expenses combined with the ever-increasing rate of inflation, many are struggling to cope financially.
Despite this, new research from Barclays has found that one of the biggest ways homeowners could save money is by switching their mortgage. The research found that 58% of people have never remortgaged outside of moving home, yet 74% of people claim that if they could save up to £50 a month, they would consider it.
Andy Gray, Head of Mortgages at Barclays, said; “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. As monthly outgoings rise, and Brits fight to cut their costs, it’s important that they consider addressing their mortgage.”
ìNearly half of those surveyed (44%) say they spent more time on cost-cutting over the past 12 months (than the previous year) – with three quarters of homeowners (76%) spending up to three hours a month on reducing their monthly costs, which demonstrates that every £1 is important.î
With homeowners nesting in one property for an average of 16 years, many could save hundreds, if not more, over that period.
As personal finances are stretched to the limit, making a larger saving on your mortgage could be more beneficial to your purse strings than cutting back on takeaways, clothes and using discount vouchers.
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