According to new research, almost a third (31%) of eligible homeowners are hoping to remortgage this year and 25% of those are looking to remortgage in January, indicating that the boom in remortgaging is set to continue well into 2017.
But despite the buzz, TSB, who published the research, say that homeowners are actually underestimating the potential savings they could be making by almost half.
From their survey of 2,000 homeowners, the bank found that the average saving homeowners’ expected to make from remortgaging was £49 a month. Whereas the actual average saving is around £96 per month, or £2,300 across the life of a two-year fixed term £100,000 mortgage.
TSB also found that some homeowners are unaware of the current opportunities available. More than half (54%) do not know that the Bank of England base rate is 0.25% and 15% of homeowners who are not planning to remortgage, said that this is because it is too much effort or it hadn’t crossed their mind.
Ian Ramsden, Director of Mortgages at TSB, said: “Mortgage payments are often the biggest outgoing for many households. By remortgaging, homeowners stand to save up to £96 per month on average, which can make a huge difference to family finances. It could mean being able to afford a family holiday, carry out much needed home renovations, or simply help ease the pressures on household finances each month.
“Remortgaging might not be right for everyone, but it’s important to understand your options. It doesn’t have to be complicated or time consuming to remortgage so it’s well worth investigating if people are looking for ways to make their finances go further in 2017. At TSB we’ve helped almost 6,000 people remortgage onto lower rates since the Bank of England lowered the base rate.”
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