Remortgagors set to save over £2,000 in 2021

Homeowners could save an average of over £2,000 this year by remortgaging to a fixed-rate product at today’s rates, according to new research from TSB.

Related topics:  Mortgages
Rozi Jones
8th January 2021
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Despite being able to save £169 per month on average by remortgaging, TSB's research shows that 89% of homeowners haven’t considered this as an option.

For 84% of homeowners, their mortgage is their biggest monthly outgoing, yet 29% aren’t aware of how much they pay in interest each month.

Some homeowners are put off remortgaging, with more than half (51%) saying they are happy with their current rate. 16% think there are ‘unnecessary fees involved’ with remortgaging, 15% think they cannot remortgage because of early repayment charges. A quarter (25%) of homeowners say they would find the task too stressful or daunting (12%). TSB today busts some of the myths that stop homeowners seeking a better deal.

As households across the UK continue to experience financial uncertainty as a result of the pandemic, this January almost three quarters (70%) of homeowners say they are looking for ways they can reduce spending in order to get their finances into shape for the coming year.

However, TSB’s research identified that when cutting down on spending respondents will look at cutting down on takeaways (60%), changing energy provider (33%), and stopping takeaway coffee (29%) – yet just 11% say they have thought about remortgaging their home.

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