Its study found that missing out on a deal with their existing lender or a new lender meant higher monthly costs for 26% of those who could not remortgage with 8% seeing a substantial rise in payments.
The main reasons for not being able to secure a new deal included tighter affordability rules under new mortgage market regulations and issues with credit records.
Around 26% of those who could not remortgage say they were turned down either because they did not fit new affordability rules or because their credit record had deteriorated. However 11% say they were turned down for being too old.
Currently the average standard variable rate, according to the Bank of England, is 4.5% while average two-year fixed rates at 75% LTV are 1.91% and 3.03% at 90% LTV.
On a £200,000 loan, someone moving from 4.5% to 1.91% could save as much as £430 a month, while moving to 3.03% would save around £240 a month.
Ian Gibbons, Senior Mortgage Broking Manager for Nottingham Mortgage Services, said:
“With rates remaining low it is potentially a good time to remortgage to a new deal but unfortunately it is not always that simple.
“With more than a quarter of those who have tried to remortgage in the past two years not being able to secure a new deal it is clear that homeowners need to think carefully and research the market.
“People’s circumstances change and seeking help from a broker to get an independent view on the best deal available to a customer is a very sensible approach.”
