Considering one fifth of Britons have never changed their mortgage lender and a further 27 per cent didn’t switch to another after their current deal ran out, broker advice has never been more pertinent.
Only six per cent of borrowers took up a new deal offered by a broker - others stuck with their existing lender or swapped to a remortgage which was thrown up after shopping around on the high street.
Eamonn Rice, mform.co.uk chief executive, said: “Loyalty should be rewarded but the millions of mortgage customers who have never moved lender are potentially paying a massive price for not searching the market.
“The mortgage industry complains bitterly about so-called ‘rate tarts’ but the reality is that two out of five borrowers are far too loyal to their lender. Many may be deterred by the fear they will have to pay high fees to move but the reality is that they can make significant savings."
Age is also a factor as the research highlighted 44 per cent of those 55-plus have never moved lender.
Currently the most competitive two-year fixed rates ranked on true cost for a £150,000 mortgage range from Market Harborough at 5.59 per cent for 2 years with a £799 start up fee while on three-year fixes Giraffe is offering 5.68 per cent till 31 October 2010 with no upfront fees. Best discounted variable rate deals include Co-op Bank’s 1.85 per cent discount for two giving a starting rate of 5.89 per cent again with no fees to pay.
