A new study from Barclays has revealed that almost 50% of residential homeowners in Great Britain have never found out what other deals are available on the market even though a third know it could probably save them money!
The study has also found that just under 30% of people do not know what the Standard Variable Rate (SVR) is, and 45% of people are not aware what Loan to Value means. This has resulted in many homeowners relying on others guidance for re-mortgaging. 46% of people tend to do what their mortgage broker tells them rather than fully understanding the terminology or asking for an explanation.
A spokesperson for Barclays said “It’s clear from our research that many find re-mortgaging a tricky subject to understand, even though UK adults have been on the mortgage payment ladder for an average of 13 years and five months. As a result, homeowners are sticking with what they know and potentially missing out on lower monthly payments. With the average amount left to pay on a mortgage at 45 per cent, and the best deals often found at lower LTVs, re-mortgaging sooner could end up saving them money – not only month to month, but over the whole term of their mortgage.”
Two-year fixed term deals were most popular with the under 30s according to Barclays with 57% of this age group choosing the shorter term fixed rate period of two years. In contrast, homeowners aged from 40-56 were most likely to commit to longer term fixed rate deals, with 47% locking in their monthly payment for 5 years.
If you are thinking of re-mortgaging, and are unsure of the process or rates available, as always please call us on 01473 462288. We are here to help.