Consumers would only remortgage for 93 saving

The average UK borrower would only consider remortgaging if they could save at least 93 per month, according to Bradford & Bingley.

12:04 19 September 2005

The average UK borrower would only consider remortgaging if they could save at least 93 per month, according to Bradford & Bingley.

Research from the high street broker has revealed that many remortgaging misconceptions persist and that around 3.3 million mortgage holders could be wasting around 6 billion a year.

However for borrowers to switch mortgages, the 'trigger point' of a 93 a month saving must be achieved reflecting homeowners' desire to save money on their monthly repayments but only at the right price. The research also showed that 26 per cent of borrowers were content to stay on their current lender's standard variable rate.

According to the study, 30 per cent of borrowers have not considered remortgaging because of the time and hassle they feel is involved while 28 per cent believe doing so would be expensive. The figures also revealed that 22 per cent never considered remortgaging, 20 per cent would not know how to do so and 14 per cent did not know they could remortgage unless they moved house.

David Bitner, head of mortgages for Bradford & Bingley, said: "Homeowners are increasingly recognising the savings they can make on their monthly repayments by remortgaging onto a competitive deal, with 93 being revealed as the all important trigger point.

"Another aspect affecting homeowners is the assumed cost. More than a quarter (28 per cent) think remortgaging would be too expensive. While it is true that many lenders have increased their arrangement and exit fees over the last couple of years there are still a number of competitive deals available."