Worrying findings underline the need to switch your mortgage
With a recent survey finding that an estimated 1.4 million people are finding it tough to meet their mortgage repayments, our message could not be clearer – switch now!
According to the findings, many UK homeowners live under a cloud of financial worries. This is with an estimated 2.6 million people believing that their mortgage payments are too high and a further 2.5 million admitting to having to make regular cutbacks to make ends meet.
There are doubtless very many reasons why people are finding it tough. But, the figures also showed why many households may be suffering unnecessarily, with 36% of homeowners confessing that they are on their lender’s standard variable rate and 58% saying that they have never remortgaged.
Getting yourself a new deal when your lender moves you onto their SVR is the number one way to save yourself money. This could be worth £100 a month extra in your household kitty.
Matt Cassar, managing director of Finance Advice Centre, said: “These are very worrying findings, especially when the report also found that 1.1 million households are wasting a total of £2.7bn because they are on the wrong mortgage deal.
“It may be that people don’t realise what rates there are out there, they don’t understand what the SVR means, or maybe they are too busy to shop around. That’s understandable, we all lead busy lives, but every day we see how much people who have been able to take time out to explore the options available to them are able to save.
“People cannot get a mortgage and then forget about it in this day and age. Like many other of the goods and services we buy, those who pay more are subsidising the lower prices used to attract new customers, so people should take action and seek professional advice to make sure they’re not picking up the bill for everyone else.”
The exceptions to this, Matt said, are Britain’s so-called mortgage prisoners who, since new tighter lending regulations were introduced in the wake of the credit crunch, are being told that their income is not large enough for them to buy a new mortgage, and, as a result, are marooned on their lender’s SVR.
He said: “There has been a campaign to get the Government to look into this matter and hopefully whoever is elected next month can put this matter high on their to-do list.
“It is important to ensure that borrowers do not find themselves in financial trouble. But ridiculous that people who have proven they can meet repayments are being penalised by a change in the rules.”
Could you save money by switching? We can help so give us a ring us on Freephone 0800 103 2655 or 01332 821 340.