Some new research from financial services specialists Momentum UK has found that UK mortgage borrowers tend to be oblivious to size of their debt. The study reveals that three in five borrowers have no idea of the remaining loan balance on their home.
According to the study just 40% of mortgage borrowers are satisfied they know what’s left to pay on their loan. In addition only a third think it’s important to consider remortgaging once a fixed period has come to an end. There also seems to be some confusion in the current low interest environment as to whether it’s better to overpay on their mortgage or top up their pension, despite both being considerable financial issues for most.
Dominic Baliszewski, director of consumer strategy for Momentum UK said, ‘Mastering the basic elements of a mortgage can save households thousands of pounds of year. Yet millions of borrowers are missing out on huge savings by failing to address the issue, perhaps because they associate mortgages with stress.’
While remortgaging may seem an unnecessary extra task, for some the benefits could be substantial, Momentum UK says that if a borrower with a £250,000 mortgage on a 20 year term renegotiated from a 4% rate to a 3% rate they would save £30,000 over their mortgage term, or more than £1,500 annually. It is not always so straight forward but Enable’s IFAs can help you find the best mortgage as part of your financial planning for you.
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE