"December saw more homeowners switch mortgage than any other month during the last eight years, but these people still represent a small fraction of those eligible to switch"
Scottish borrowers were closely followed by those in East England, where 39% said they had switched provider to secure a more favourable deal at the end of a fixed period, considerably higher than the 28% average across the UK.
People from the West Midlands were more likely than any other region to cite loyalty to one lender as a reason for not switching, with a quarter of borrowers (25%) doing so. Just 14% of borrowers in Scotland said loyalty had prevented them remortgaging.
In August 2016, the average annual savings gained from switching from an SVR to a market-leading fixed rate rose to £3,500 as the Bank of England cut the base rate to 0.25%. Yet according to the research, just a quarter of the population understand the relationship between a base rate change and their own mortgage.
This lack of awareness is likely one of the reasons why those in the West Midlands are not switching, given only one in five (19%) people from this region understand how their mortgage could be affected by the interest rate, compared to 28% across the UK.
Ishaan Malhi, CEO and Founder of Trussle, said: “The majority of homeowners across the country have never switched mortgage provider to secure a better deal, and that’s a worry. When you consider that only two in five people have remortgaged to reduce their repayments in Scotland, the most proactive region of mortgage switchers, you start to appreciate the scale of the challenge we face as a nation.
“December saw more homeowners switch mortgage than any other month during the last eight years, thanks to historically low interest rates, but these people still represent a small fraction of those eligible to switch to a more suitable deal. Much of the complexity and hassle has been eliminated from the switching process as lenders and brokers start to embrace technology. This makes it an ideal time for the remaining three million UK homeowners paying their lender’s Standard Variable Rate to start thinking about switching to a more suitable mortgage deal.”
