New research suggest that mortgage borrowers in Scotland are the most proactive in the UK when it comes to switching to a better deal.
In a study carried out by YouGov for online mortgage broker Trussle, 41% of people in Scotland with a mortgage said they had switched provider to secure a more favourable deal at the end of a fixed period, closely followed by East England (39%), considerably higher than the 28% average across the UK.
Those in the West Midlands are most likely to be languishing on an expensive Standard Variable Rate (SVR), with just 11% having ever switched mortgage for a more attractive rate. Trussle said one explanation for this could be loyalty to one lender, as people from the West Midlands were more likely than any other region to cite this as a reason for not switching, with 25% of borrowers doing so. Just 14% of borrowers in Scotland said loyalty had prevented them remortgaging.
Those in the East Midlands (23%), North West (25%), North East (25%), Yorkshire (26%) and South East (27%) were also below average when it came to mortgage switching.
Despite potential savings from remortgaging dwarfing the £200 average saved by switching energy provider, people across all 11 regions were more likely to have switched gas or electricity provider to get a better deal, with half (50%) of the UK population having done so. This was most significant with West Midlands residents, who are almost five times (53%) more likely to switch gas or electricity provider than mortgage provider.
Ishaan Malhi, CEO and founder of Trussle, said: “The majority of homeowners across the country have never switched mortgage provider to secure a better deal, and that’s a worry. When you consider that only two in five people have remortgaged to reduce their repayments in Scotland, the most proactive region of mortgage switchers, you start to appreciate the scale of the challenge we face as a nation.
“December saw more homeowners switch mortgage than any other month during the last eight years, thanks to historically low interest rates, but these people still represent a small fraction of those eligible to switch to a more suitable deal. Much of the complexity and hassle has been eliminated from the switching process as lenders and brokers start to embrace technology. This makes it an ideal time for the remaining three million UK homeowners paying their lender’s Standard Variable Rate to start thinking about switching to a more suitable mortgage deal.”
