Homeowners risk missing out on £96 each month, as few understand remortgage potential
Many homeowners are missing out on the massive savings they could make by remortgaging, research from TSB suggests.
While remortgaging enjoyed a surge in popularity last year due to mortgage rates being at record lows, surveys indicate that a large portion of homeowners underestimate its savings potential.
As such, experts warn that the lack of education around remortgage could mean too few homeowners are making the switch.
Remortgaging is where the owner of a property is changing from one lender to another, usually to get a better rate mortgage.
Figures released by TSB show that the average respondent expected to make around £49 a month by remortgaging their property. In actual fact, the average saving is £96 monthly - or £2,300 across the life of a two-year fixed term on a £100,000 mortgage.
Emma Coffey, GW’s property expert, comments:
“Life is much more expensive than it used to be, so it can certainly be a struggle for many people to save, especially as they near retirement.
“Luckily, the process of saving isn’t as linear as it used to be, and there are plenty of options available to homeowners in particular who would like to boost their monthly income or improve their lifestyle.
“Some people use the cash freed up by remortgage to become more financially stable as they grow older. Others choose to go on multiple holidays or buy a new car. It’s really up to you.
“Like always though, I would highly advise anyone who is considering remortgage to seek the advice of a good team of property experts.”
Content correct at time of publication