According to the latest research, more than 1.1 million home owners have the wrong mortgage deal in place, costing them more than £2,500 each year.
L & C Mortgages conducted a survey which found that 3.4 million households, or 30%, didn’t know what their current mortgage rate was. The research found that Standard Variable Rate (SVR) mortgages appeared to be the biggest cause of home owners paying over the odds. SVR mortgages tend to be a higher rate, costing 36% of home owners hundreds of pounds every month.
David Hollingworth, from L & C Mortgages, said:
“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.”
Hollingworth added that it was a huge concern that people were paying more each month than they should have to, especially as the cost of living was continuing to increase. The research also highlighted the fact that home owners weren’t taking action to reduce their mortgage payments, despite being aware of the problem. According to the company, £216 a month could be saved by changing to a better deal, however, 58% of home owners have never switched to a better deal to save money.
Mortgage advisers spend time on CeMAP courses so that they are able to provide the best advice to customers.
