Homeowners Missing Out on Important Money Savings Due to Misinformation
According to a recent research study, homeowners are missing out on the savings and benefits of remortgaging. The reasons are many, but unfortunately for some it is a matter of holding on to misinformation. It was determined that for those homeowners who chose to not remortgage at the end of their mortgage term and were then moved to their lender’s standard variable rate (SVR) they could save an average of £4,080 per year with a remortgage.
The data revealed that one in ten homeowners also believed that a higher interest rate payment helped pay off the mortgage quicker.
The research by Habito could help homeowners realize they are likely missing out and paying more money that necessary on their mortgage repayments. The average lowest two year remortgage deal offered by the six top remortgage lenders was 1.26% while the average SVR was more than double at 3.53% and there were some lender’s SVRs that were as high as 6%.
Those polled in the research also mistakenly believed that remortgaging was only something someone did when they were financially insecure, or that it would involve taking on more debt. There were also those that were totally unaware of remortgaging or what it involved.
Such viewpoints reveal that there are homeowners that are missing out on keeping more money in the household budget at a time when saving money could offer financial easing and peace of mind during the pandemic.
Experts encourage homeowners to shop online for a remortgage. Quick quotes are available on most remortgage broker or lender websites. After a few questions are answered, the homeowner will have in hand the possible remortgages and savings available. Such information can open up the homeowner to the benefits of remortgaging. Finding answers to common questions are also possible. Information in hand could lead the homeowner to being more comfortable to seek out remortgage experts for further advice or to build up the motivation to take action and reap the opportunities remortgage could offer at a time when saving money could be very important.