93 Saving triggers switch

The average borrower will only remortgage if they can save 93 a month, research from Bradford & Bingley reveals.

The high street broker claims borrowers want to save on their monthly mortgage payments but will only go through the remortgage hassle if the price is right.

With over a quarter of borrowers content to languish on their lender’s standard variable rate it’s clear that many remortgaging misconceptions persist.

The B&B research reveals that 30% of borrowers who have not considered remortgaging haven’t done so because they think it lakes a lot of time and hassle, with 28% believing it is quite expensive.

Although 22% have never thought about remortgaging, 20% wouldn’t know how to go about it and 14% don’t even realise they can remortgage without moving house. But such misapprehensions could cost home owners dear.

Some 3.3 million mortgage holders could save around 6bn a year in repayments if they switched from their SVR on to a market-leading deal.

David Bitner, head of mortgages for B&B, says: “Home owners are increasingly realising 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.

“But despite this growing awareness there still exist some crucial misconceptions. One of the most important factors affecting home owners’ propensity to remortgage is the belief that the process will be too time consuming and taxing.

“In reality, once you’ve shopped around or visited a mortgage broker to find the best deal, the process is simple and hassle-free, and takes typically four to six weeks.”