Over one million UK homeowners on wrong mortgage deal

Over one million UK homeowners on wrong mortgage deal
Over one million UK homeowners on wrong mortgage deal

Over 1.1 million UK homeowners are sitting on the wrong mortgage deal and wasting over £2,500 every year according to latest research.

The research from L&C Mortgages also discovered that 30 per cent or 3.4 million households do not know their current interest rate of their mortgage, and with a total £2.78 billion in lost.

‘Lack of awareness’

Standard Variable Rate mortgages (SVR) appear to be the biggest offenders.With 36 per cent of homeowners on SVR mortgages which tend to be higher sees homeowners lose hundreds every month.

David Hollingworth from L&C Mortgages explains, “It’s worrying to see so many people still on a Standard Variable Rate mortgage as they are not the cheapest rates available.

“Not only is there a lack of awareness around how much could be saved but worse still a huge number of people have never even tried to remortgage to get a better deal.”

With an SVR homeowners in London could be paying £266 extra a month and if interest rate rise then four million people with SVR mortgages could see payments rise.

“Not only is there a lack of awareness around how much could be saved but worse still a huge number of people have never even tried to remortgage to get a better deal.”

Homeowners not taking action

“With the cost of living on the rise and day to day expenses like energy prices soaring, it is hugely concerning to see that people are paying so much more than they should be,” adds David.

“On top of this, our research shows that while homeowners believe they are paying too much for their mortgage they still aren’t taking action to cut their monthly payments,’ he explained.”

L&C Mortgages added that by switching to a better deal, UK homeowners could save £216 each month or over £2,500 annually. Although 58 per cent of homeowners have never re-mortgaged to save money.

“Not only have we found over a third of homeowners are on their bank or building society’s standard variable rate, but 3.4million people don’t know their mortgage rate. The chances are they could potentially save hundreds or even thousands of pounds a year by remortgaging to a new deal,” he added.

Could technology push the mortgage market to undergo Uber-ification?

Technology has revolutionised many industries: the hotel industry has AirBnB, taxis have Uber and diners have Deliveroo, but what could technology hold for the future of the mortgage industry? “The mortgage industry is rarely at the front of the queue for innovation,” says Mark Lofthouse Chief Executive Officer of Mortgage Brain. However, technology is beginning […]

31 is the age which people from Yorkshire think they can afford to buy a property

The age which people in Yorkshire living in rented accommodation think they’ll be able to buy their first house is 31, according to research published by Spark Energy. “We’ve identified that 31 years old is the average age a renter in Yorkshire thinks they’ll be able to buy their first property and that around 9.6% […]

Mortgage sales in Yorkshire plummet by 18.5% – the biggest slump in the UK

Mortgage sales for the UK fell by £2.62 billion in April, down 16 per cent on the previous month, according to Equifax Touchstone analysis of the intermediary marketplace. Buy-to-let figures plunged 20.4 per cent (£0.55 billion) to £2.15 billion and residential followed suit, dropping by 15.1 per cent (£2.07 billion) to £11.60 billion. Overall, mortgage […]

Planning applications – May 23

Here are the latest planning applications for Wetherby, Adel & Wharfedale and Alwoodley. WETHERBY: Bellway: Consent, agreement or approval required by conditions 6, 8, 20, 24 and 36 of Planning Application 13/03051/OT, Spofforth Hill. The Wetherby Steeplechase Committee Limited: Consent, agreement or approval required by condition 5 of Planning Application 15/06091/FU, Wetherby Race Course York […]