Switching mortgage provider could save consumers money
July 16, 2010
One High Street lender has recently stated that many homeowners in the UK are stuck in mortgage limbo, where they are stuck with a variable rate mortgage that is more expensive than the best buy mortgages that are on the market. The home finance spokesperson from Yorkshire Building Society said that consumers could save a fortune simply by switching their mortgage.
Tom Girling, the mortgage product manager at the building society said that many homeowners were stuck on standard variable rate mortgages with various lenders, but that they could get far better deals elsewhere. He said that this was known as being stuck in mortgage limbo.
Girling stated that there was a significant difference in the cost of some of the best buy mortgage products on the market and the price that many consumers were paying on their mortgages. The building society conducted research showing that homeowners in the UK would be able to save around £1.8 billion a year collectively simply by changing their mortgage provider.
Switching mortgages has been made far easier over recent years as a result of mortgage comparison sites and various internet websites that allow consumers to quickly compare mortgage products and determine which ones are best suited to their needs and their budget.
However, many people fail to take action to switch their mortgages or other services and products that could be cheaper with another provider, such as insurance cover or utilities.
In the meantime Yorkshire Building Society has launched a new five year fixed rate mortgage with a rate of just 3.99 percent, which is the lowest it has ever offered on this type of mortgage.
Mr Girling said: “Our analysis shows that the vast majority could make significant savings by switching to a better rate mortgage.”
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