A lack of advice could leave over-55s thousands of pounds out of pocket as they are stuck on uncompetitive deals.
Older homeowners who don't take mortgage advice are at risk of missing out on the best mortgage deals, Legal & General Mortgage Club has warned.
With thousands of borrowers aged 55 and over currently sitting on a variable rate L&G research found that94% of these borrowers haven’t switched their mortgage in the last five years.
Earlier figures released by Legal & General showed that 95% of borrowers who used an adviser would recommend their family or friends do the same for their next mortgage search.
Kevin Roberts, director, Legal & General Mortgage Club, said: “It’s a highly competitive time in the mortgage market.
"There are some great mortgage deals available to borrowers, today, but navigating the complexities of fixed rates versus variable rates, early repayment charges and mortgage terms can be a challenge.
"Our research shows that older borrowers are much less likely to have sought advice on their last mortgage and thousands are sat on variable rates such as their lender’s SVR.
"By speaking to an adviser and switching to one of the competitive fixed rate deals currently available on the market, these borrowers could save themselves thousands of pounds in interest at a time in their lives when they are having to save wisely for retirement.
"This could be the equivalent of a pay rise or it could mean they’re able to pay back their mortgage before they retire.”
Analysis of Trigold data by Legal & General Mortgage Club shows that a borrower sitting on a typical SVR of 4.89% could make an annual saving of just over £3,200 by speaking to an adviser and switching to a 2-year fixed rate deal at 1.45%.
The research also showed that borrowers aged 55 and over are almost half as likely to have used an adviser in their mortgage search compared to those aged 25-54.
Just 29% of those aged 55 and over had sought the support of an adviser for their last mortgage transaction, compared to 58% of those aged 25-54.
