89% of people who own their own homes haven’t considered this as an option, yet they could save an average of over £2,000 this year – the equivalent of £169 per month – by remortgaging to a fixed-rate product at today’s rates, according to new research from TSB.
The research found that for 84% of homeowners, their mortgage is their biggest monthly outgoing, yet 29% aren’t aware of how much they pay in interest each month.
Some homeowners are put off remortgaging, with 51% saying they are happy with their current rate. 16% think there are ‘unnecessary fees involved’ with remortgaging, 15% think they cannot remortgage because of early repayment charges.
Meanwhile, 25% of homeowners say they would find the task too stressful or daunting (12%).
70% of homeowners say they are looking for ways they can reduce spending in order to get their finances into shape for the coming year. However, TSB’s research identified that when cutting down on spending respondents will look at cutting down on takeaways (60%), changing energy provider (33%), and stopping takeaway coffee (29%) – yet just 11% say they have thought about remortgaging their home.
Nick Smith, head of mortgages at TSB, said: “Your mortgage is typically the biggest investment you will ever make, yet it’s not always the first place where homeowners will look when reviewing their finances.
“Remortgaging might not be right for everyone, but it’s important to take a look at your options, know the amount of interest you’re paying and speaking to your bank or mortgage adviser about any changes that could save you money.”