Remortgaging could save you thousands

10 March 2005
New research has revealed that people who continuously remortgage their property can save thousands of pounds.

Online mortgage broker Purely Mortgages found that if someone with a £100,000 interest-only mortgage were to remortgage every two years over a decade he or she could save £10,000 on interest payments.

Yet the research also suggests that only about forty per cent of borrowers are taking advantage of the potential benefits of remortgaging

Six out of ten homeowners who bought more than a decade ago have never remortgaged, and 85 per cent of 50s said they would not automatically remortgage.

"The majority of endowment policies were sold in the 1980s, yet worryingly it is people who bought around this time that have lost most by not remortgaging," said Mark Chilton, the chief executive of Purely Mortgages.

"These borrowers will not only have paid more for their mortgage than necessary but may still be facing an endowment shortfall."

The survey revealed that a further 3.6 million homeowners would only be tempted to remortgage if they moved house.

Click here to find out more about remortgaging your home.
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