Nearly half of homeowners have never remortgaged their properties, despite the fact it could save them hundreds or even thousands of pounds a year.
While almost one in three homeowners knew that remortgaging could save them money, 49 per cent had never switched their deal, according to a report by Barclays1.
The typical borrower had been on the mortgage payment ladder for an average of 13 years and five months, its research found.
Barclays’ research also revealed a lack of awareness about some of the terminology used by mortgage lenders and brokers, which it said contributed to their reluctance to remortgage.
More than one in four said they did not know what the standard variable rate (SVR) was, and almost half were not aware of what loan to value (LTV) meant.
As such, nearly half of those who had remortgaged said they would do ‘whatever their mortgage broker told them’ rather than doing the research themselves.
A spokesperson for Barclays Mortgages, said: ‘It’s clear from our research that many find remortgaging a tricky subject to understand.
Source:
Crane, H. (2021) HALF of Britons have never remortgaged. Available at: https://www.thisismoney.co.uk/money/mortgageshome/article-10140017/HALF-Britons-never-remortgage-save-thousands.html. Accessed 11th April 2022.
