Despite the fact four out of five homeowners (80 per cent) think they could get a better mortgage deal than the one they’re on, millions of mortgage-holders admit they can’t face the hassle of switching their mortgage.
According to new independent research conducted with 1,100 UK mortgage-holders on behalf of mortgage broker Boon Brokers, 1.43 million homeowners admit they have put off changing their mortgage because they didn’t feel like they had the time or energy. That equates to 13 per cent of the nation’s 11m outstanding mortgages*.
Yet only one in five mortgage holders (20 per cent) feel confident they are on the best deal they could be. Women were marginally more likely than men to feel sure they had secured the best possible interest rate (22 per cent vs 18 per cent).
A third of those questioned (34 per cent) said they felt switching mortgage is always a hassle. Under 45s were three times more likely to have put off switching than the over 45s (6 per cent vs 22 per cent).
Gerard Boon, founder and partner at Boon Brokers, said: “Switching a mortgage doesn’t have to be stressful, yet it is one of those things which people regularly put off. We will happily spend time shopping around to save a few pounds when we are buying a new washing machine, but we won’t re-finance to the best mortgage product on the market which could save hundreds of pounds per month – tens of thousands over the lifetime of the product. One of the very worst situations to be in is to have come out of a fixed term deal and ended up on a lender’s standard variable rate – the difference can be dramatic, yet so many people are in that situation.
“Often the reason is people believe it will be too difficult to switch – and it really doesn’t need to be, particularly if you use a good mortgage broker. Previous research we have conducted showed that 39 per cent of mortgage holders had never used a mortgage broker. Some may be worried about expensive fees – but many of the best brokers don’t charge their customers fees. We strongly believe they shouldn’t charge client fees, especially for re-mortgage cases that are typically less time consuming than other cases, because all brokers get a procuration fee from the lender once a mortgage is agreed. Other homeowners might be put off using a broker because they worry they will be encouraged into a deal they don’t want. Any reputable broker would never do that. Look for one who has whole of market access (i.e. isn’t tied to a smaller number of lenders) and who has good independent reviews. For no charge at all from a broker, you could be saving yourself thousands of pounds over a very short time frame – and with zero hassle to you.”
Boon Brokers has created a guide to help homeowners understand the role a mortgage broker can play and to help them find the right one for them. It can be found at www.boonbrokers.co.uk/choosing-mortgage-broker/
Boon Brokers is an independent mortgage, insurance and equity release brokerage. It does not charge client fees for mortgage or insurance advice or product arrangement and is directly authorised by the FCA to enable whole of market access.