Homeowners could reduce their mortgage payments by as much as £300 every month, just by switching mortgage providers.
If someone offered you almost £300 off your monthly mortgage repayments, wouldn’t you jump at the chance to save cash?
Yet the same opportunity is being ignored by the majority of consumers who fail to switch provider and pay less for their mortgage, because of ‘jargon-filled’ paperwork.
A recent report found that, while many of us are familiar with switching our utilities, too few people look to switch their mortgage to a better rate on a regular basis, costing the nation an estimated £15.5bn each year.
Switching your mortgage provider is easier than you might think
In the study, one in three mortgage holders (34%) said they only read up to a quarter of their mortgage contract as they were confused by the document, with 51% saying legal jargon and 48% saying terms and conditions were difficult to understand.
The research showed that 55% of those surveyed could reduce their monthly payments by almost £300 by switching to a new mortgage. Further, it revealed that those who found it difficult to understand mortgage ‘jargon’ were most likely to benefit with a switch from a variable rate, which is vulnerable to Bank of England base rate changes.
However using a mortgage broker, such as NM Finance, to find the lowest rate for you, to carry out the switch and to manage the mortgage application process makes it easy to switch and get the benefit of a significantly lower mortgage rate.