More than half of homeowners have never remortgaged to another deal, even though in most cases this could cut their monthly repayments.
Research conducted by mortgage adviser London & Country (L&C) shows that 58% of people have never switched their mortgage product, and more than a third (36%) of homeowners are currently on a standard variable rate (SVR) mortgage, even though these are typically more expensive than fixed rate mortgages.
In addition, 2.5 million people say they have had to cut back on other spending in order to meet their monthly payments, while 1.4 million households describe themselves as “struggling” to pay off their mortgage.
The average UK homeowner has £95,039 left on their mortgage, a sum which should take around 13 years to pay off. On a regional basis, those living in London have the biggest mortgage debt with an average of £183,981 outstanding. This will take the typical homeowner in the capital 16 years to pay.
At the other end of the scale those in Wales have an average of £68,223 to pay off, a smaller sum than any other area of the UK. However, comparatively low wages mean this will take the average owner in Wales 14 years to clear.
Yet simply checking if you can remortgage to a better deal could save you money. Use our mortgage comparison tool to compare deals.
David Hollingworth, associate director of communications at L&C Mortgages says: “The fact that people have been making cuts in order to cover mortgage payments indicates how people feel they are ‘just about managing’ in many aspects of their lives.
“The problem is that although people feel they are struggling, they are not taking steps to manage their mortgage.
“It is really important that people keep on top of their mortgage and take control of their monthly payments by using the current low in mortgage rates to their advantage. Always ask – could I be on a better deal?”