Homeowners are missing out on record-low mortgage rates, by failing to switch to a better deal when their fixed rate expires.
According to research from mortgage broker Trussle and YouGov, only 28% of borrowers have ever switched their mortgage, despite the average customer saving £2,800 a year by remortgaging.
People are twice as likely to switch their energy provider, despite annual savings being 14 times smaller at just £200 a year, the survey found. They were also more like to switch their car insurer (60%) or mobile phone provider (40%).
Only 6% of respondents had considered moving their mortgage since the Bank of England Base Rate was further reduced to 0.25% in August. When asked why they hadn’t switched mortgage, one in five said it would be too much hassle, while 14% thought it was too complicated. Around 15% believed they would be penalised for remortgaging, while 7% said they were loyal to their existing lender.
Ishaan Malhi, chief executive and founder of Trussle, said: “It’s shocking that almost three quarters of mortgage borrowers have never switched provider in search of a better deal. Especially as households across the UK are throwing away thousands of pounds every year by failing to take advantage of the best rates on the market.
“Part of the problem is clearly a lack of awareness, but many borrowers are simply reluctant to face the ordeal of switching. However, mortgage rates have fallen to record lows, and technology is making switching mortgages easier than ever. Now’s the time for borrowers to take charge of the situation.”