A lack of knowledge surrounding the benefits of remortgaging is causing thousands of Brits to pay more for their mortgage than necessary.
In a study of 4,370 adults, 47% of respondents associated remortgaging with taking on more debt, 7% home renovations and 5% on failing to meet existing repayments.
Just one in three Brits consider remortgaging an effective way of securing a better rate on their mortgage.
The research conducted by YouGov found that UK borrowers could be making larger mortgage repayments than necessary because of confusion surrounding remortgages.
The survey also found that a significant proportion of mortgage borrowers had not changed their mortgage product for some time. 39% said they hadn’t changed their mortgage product in the last five years while 13% had never changed their mortgage.
When asked why they don’t remortgage, a fifth (20%) of respondents didn’t think they could save money, 9% said the process was too complicated and stressful, and 5% believed the application process would be too time consuming.
With economists predicting an interest rate rise in the coming weeks, it’s within homeowners’ best interests to ensure they’re on the most affordable deal for their circumstances.
If interest rates do rise, mortgage holders with a variable rate mortgage could see the cost of their repayments surge. In some cases, homeowners may have to stretch their finances in order to cater for the extra costs.
By remortgaging while interest rates are low, homeowners can lock into an affordable deal for a fixed period of time, protecting themselves from future increases and ensuring they’re able to manage their finances.
If you’d like help to find the right mortgage deal for you, please get in touch with the team at TaylorMade. We can compare hundreds of deals on your behalf before highlighting the most suitable mortgage products for you.
