New research shows that 75% of borrowers could be missing out on the opportunity to pay less for their mortgage. By not shopping around, three-quarters of homeowners could be paying, on average, nearly three thousand pounds more than is necessary over the lifetime of the loan.
The research by YouGov and a leading provider of mortgages also found that those with mortgages were twice as likely to change who supplies their energy rather than change their mortgage provider. Yet, changing their energy provider would only save homeowners £200 whereas changing their mortgage provider would save around £2,800.

A homeowner with a 25 year £150,000 mortgage who is sitting on their lender’s standard variable rate of 4.5% would pay approximately £833.75 per month. Yet by remortgaging to a fixed rate of say, 1.84%, the payments would fall to £624.16. That’s a saving of over £200 each month.
Apparently over half the mortgage holders in the UK have never switched providers to get a better deal. With historically low mortgage rates UK households are basically throwing thousands of pounds away each year.

I doubt people stay with their mortgage provider out of loyalty, I think the main reasons borrowers don’t change is that they don’t really know where to start and the whole process seems quite daunting. So here goes…

1. Find a Mortgage Adviser you trust – preferably one who is independent and able to look at the whole of the mortgage market for you.

2. They will check which lender will offer you the best rate for your circumstances, taking into account affordability, credit status, the value of your property etc.

3. Your broker will apply to the lender for your mortgage for you

4. The lender will carry out their various checks, (they may also want to come and value the house), and then they will issue your mortgage offer

5. From there the appointed solicitor will carry out the legal work to change the charge from your existing lender to your new lender

6. Finally, on the day of completion, your solicitor will request the funds from your new lender and pay off your existing loan. The new lender will write to you confirming when your first payment is due.

As an incentive, most lenders offer to pay for the valuation and the legal fees. This means that the whole process can sometimes be done for free and often for only a few hundred pounds which you can hopefully recoup via your new lower monthly payments.

New Year’s Resolution Number 1

Find out if you can save money on your mortgage!

For more information speak to a mortgage adviser on 01628 507477 or contact us.

Recent posts

A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.

Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.

The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.

Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.

As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more. 

The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.

Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.

Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.

 

Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break

The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.