Online mortgage broker Trussle has launched a new market monitoring tool, which alerts mortgage customers when they could save money by switching to a better deal.
Research from the broker found there are two million people sat on their lender’s standard variable rate (SVR) paying more than they need to.
Collectively, borrowers in the UK are paying around £10 billion in interest unnecessarily each year. An individual on a poor-value SVR could save as much as £360 a month by switching to a better deal.
However, many borrowers end up remaining on these expensive deals as they are unsure of the terms of their current mortgage. Trussle says almost half (48%) of mortgage customers don’t know when their initial mortgage term comes to an end.
Trussle’s new online tool allows borrowers to input details of their current mortgage, which it will then compare each day against the best deals on the market. When better deals are available, customers will be sent an email to notify them that they could switch and save.
The service covers more than 11,000 mortgage products at 90 different mortgage lenders and is free to use. This covers more than 90% of the UK mortgage market, including all the major players.
Trussle says that a traditional mortgage broker would typically notify customers three months before the end of their mortgage deal. However, this service tracks the market daily and will also work out if it is cheaper to pay an early repayment charge and switch to a new deal before your current term ends.
The downside is that the tool not give you the name of the mortgage lender offering the best deal unless you switch using Trussle’s online broker service – although you’re not obliged to do so. But this doesn’t stop you from using the service as a prompt to talk to your existing broker or mortgage lender and tracking the deal down yourself.
This service has previously been available to existing customers, but this marks the first time the monitor tool has been opened to non-Trussle customers.
Ishaan Malhi, chief executive and founder of Trussle, says: “We know that at least two million mortgage borrowers in the UK are failing to switch at the right time.
“This is either because they don’t realise the benefits of remortgaging, forget when their current deal is due to end, or they had such a bad experience getting their last mortgage that they put off going through the process again.
“Offering this service to the UK’s 11 million borrowers is another step towards our goal of completely transforming the switching process and eradicating switching inertia.”