A further 60 per cent of homeowners who have lived in their homes between 10 and 20 years have decided to stick with their original lender, potentially wasting thousands of pounds by not remortgaging to a cheaper deal, says Purely Mortgages.
Reasons given for not remortgaging are homeowners believe they already have the best deal possible (7 per cent), the cost of remortgaging outweighs the benefits (8 per cent) and 15 per cent of homeowners didnt realise that they could remortgage without moving home.
According to Purely Mortgages, a borrower with a £150,000 interest only mortgage who remortgaged every two years (getting a deal 2 per cent cheaper than the average standard variable rate), would have paid out approximately £16,500 less in interest over a ten-year period than someone who has never remortgaged.
Mark Chilton, chief executive of Purely Mortgages, said: Its unrealistic to expect borrowers to remortgage constantly, but even looking closely at your financial circumstances every few years could mean that you end up saving yourself thousands in the longer term.
I would strongly urge borrowers, particularly those who simply believe that the cost will outweigh the benefit, to at least find out whether they could be on a better rate after all, what do they have to lose?
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