Remortgaging still unfamiliar to many Britons

Wednesday, November 28, 2007

Nearly a third of UK borrowers have been on their current mortgages for a decade or more, new research has discovered.

Last month mform.co.uk revealed that a significant number of borrowers had never changed lenders, and the mortgage firm's latest study has revealed that 29 per cent of borrowers have not changed deals for at least ten years.

With half of Britons having been on the same deal for at least five years, mform has said that borrowers have nothing to fear from remortgaging if they do their research.

"The Bank of England base rate was 7.25 per cent in November 1997 so mortgage customers who've been with the same lender for ten years or more might think they are doing comparatively well with the base rate at 5.75 per cent now," noted Francis Ghiloni, marketing and business development director at mform.co.uk

"That though ignores the fact that there are a wide range of deals which will reduce monthly mortgage payments considerably even on relatively modest loans.

"People put off remortgaging by the potential cost can reassure themselves the move will be worthwhile by thoroughly researching the market before they move," Mr Ghiloni added.

The Bank of England is expected to cut interest rates at least twice in 2008, according to the latest market predictions.

Source: http://news.hotproperty.co.uk/Remortgaging_still_unfamiliar_
to_many_Britons_18370576.html