"It is likely that many of those who haven’t switched mortgage for quite some time (or ever) are now on a standard variable rate."
More than one in seven mortgage holders (15%) have never switched mortgages, according to a new survey from Boon Brokers.
After the youngest category of homeowners, likely relatively new to the housing market, those aged over 65 were least likely to have ever switched, with 18% admitting that was the case.
For those who had previously changed their home loan, many hadn’t done so for a significant length of time. One in 10 (9%) said it had been over 10 years since they last changed mortgage and a further 13% said it had been more than five years. This is despite only one in four (24%) believing they are tied into their current mortgage deal.
12% of mortgages are with the company the borrower banks with – which is often unlikely to be the best deal available. This figure was highest in the 45-64 age range, at 16% of homeowners.
Gerard Boon, founder and partner at Boon Brokers, said: “The worrying thing about these statistics is that it is likely that many of those who haven’t switched mortgage for quite some time (or ever) are now on a standard variable rate. Any fixed deals will have ended, leaving them reverting to a significantly higher interest rate than they could get if they went out on to the open market. People often believe it will be stressful or more hassle than it is worth to switch but in reality, if you go through a reputable mortgage broker, it can be incredibly straightforward – and the savings can run into hundreds of pounds a month."