Most Brits don't understand the value of remortgage
Only one in three Brits associate remortgage with securing better mortgage rates, research has revealed.
Almost half, on the other hand, associate remortgaging with more debt (35%), home renovations (7%) and failing to meet existing repayments (5%).
The survey, conducted by YouGov on behalf of Habito, also indicated that a significant proportion of mortgage borrowers had not changed their mortgage product for some time. Two fifths (39%) said they had not changed their mortgage product in the last five years, with 13% having never done so.
The reason many had not switched product or remortgaged was because they felt they could not save money by doing so; that the process was too stressful and complex; and/or the application process would take too much time.
In total 4,370 adults were quizzed as part of the study, 1,084 had a mortgage.
Emma Hall, Head of Sales at GWlegal, says she is shocked that so many people are misinformed about remortgage and how it can be used as a valuable money-saving tool.
“Remortgage, if done right, will save you money ultimately. It allows you to reduce your loan size and lock in a cheaper rate.
“These findings go to show how important it is to enlist the help of professionals experienced in the property field. Chatting with your work colleagues or searching Google will never equip you with the information you really need to make an informed decision about something as important as your financial situation.”