Brits should remortgage to save money

Brits are letting themselves down when it comes to getting the best mortgage rates as over half have never changed their mortgage outside of moving house.

New research by Barclays has revealed that 58 per cent per cent of homeowners have never changed their mortgage without moving house, despite many making significant cutbacks elsewhere to save money.

Around 92 per cent of those polled claimed to be reducing their monthly outgoings and 74 per cent claimed they would consider remortgaging if it could save them £50 a month, although most thought that a better deal would only give them an extra £10 a month.

"The fact that around six in ten homeowners have never changed their mortgage outside of moving house suggests that they simply don't realise the levels of savings to be had by remortgaging. As monthly outgoings rise, and Brits fight to cut their costs, it's important that they consider addressing their mortgage," said Andy Gray, head of mortgages at Barclays.

It found that 44 per cent of homeowners have spent more time over the last 12 months on cost-cutting, with 76 per cent claiming to spend more than three hours every four weeks on making ends meet.

Mr Gray added that research by Barclays proved that many people could save around £50 a month, with the UK collectively capable of saving £346 million over the next two years if they remortgage.

However, some people are looking for the best mortgage rates to save money if figures from the Council of Mortgage Lenders CML are anything to go by.

The organisation revealed that remortgaging in August was 30 per cent higher than the same month in 2010.

Some 34,100 loans were taken out in the month, worth around £4.2 billion, showing that both volume and value of remortgages increased.

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2011-11-07 14:06:42 © Moneyextra.com