7 Nov

40% of Brits stick with existing mortgage provider

40% of Brits stick with existing mortgage provider

Around two in five homeowners stick with one mortgage lender throughout the duration of their loan despite the profusion of deals available, it has been revealed.

According to data from online mortgage firm mform.co.uk, around 14 per cent of borrowers shun new deals and opt to stay with their existing provider.

This is despite the fact that by changing provider annual savings of £2,130 can be made on average standard variable rates of 7.75 per cent, according to Eamonn Rice, chief executive of the company.

He 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," Mr Rice added.

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