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Borrower apathy rising, says Clear Cut

The company says that the average UK mortgaged homeowner could save £66.75 a month simply by switching from their current mortgage to a better product.

This would reduce the average UK annual household repayment from £5,167 to £4,366 on the average outstanding mortgage balance of £63,250. The saving equates to cutting national mortgage repayments by £8.1bn a year, or 16% of total repayments.

The apathy gap has grown at a time when interest rates have been raised five times in the space of 10 months.

Ben Thompson, sales and marketing director of Clear Cut Mortgages, says: “It is surprising that the message has failed to get through to borrowers that they can make real savings on their mortgage, simply by switching to another rate.

“What is perhaps most interesting is that this is against a backdrop of increasing interest rates and there must be a good number of borrowers that are starting to feel the pinch of higher rates.

“That said, although the overall number has increased, there has also been an increase in the average mortgage over the last year and therefore the picture is very similar to last year &#45 the most revealing figure is only 16.2% of all borrowers remortgaged over the 12-month period.”

Last year&#39s research showed that most borrowers were either aware that they could save money by remortgaging and had failed to do so, or didn&#39t believe that they needed to.

Thompson adds: “We strongly recommend to any borrower that is in any doubt that they should review their mortgage arrangements and would encourage those that perhaps think they don&#39t need to remortgage to make a call and find out what they could save.

“At a time when disposable income is being hit by a variety of factors, for many, this is an option to control and reduce their mortgage outgoings and all at a time when the market is highly competitive and awash with good deals.”

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