Record number of people are switching mortgages to save money

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According to Emma Munbodh writing for The Mirror in January 2017, millions of borrowers have recently switched from variable-rate mortgages to low-interest fixed-rate ones. This has resulted is borrowers making considerable savings on their monthly mortgage repayments.

Munbodh, the newspaper’s Senior Finance Correspondent, wrote that because switching mortgages is seen as a stressful experience, many borrowers are reluctant to do it, even though they could save considerably. She urged any borrower who is nearing the end of a variable-rate mortgage to consider a switch.

Finding a cheaper mortgage is not as difficult as many people believe. Munbodh recommends using a mortgage broker who can compare a large range of deals. An expert broker can offer advice and find the best mortgages that will save the most money. Savings of £170 a month or more can be made.

She also warned against leaving the mortgage decision to the last minute, because a mortgage can take several weeks to complete. If a borrower is currently on a fixed rate that is due to end soon, he or she could end up paying a large interest rate until a new cheaper mortgage has been completed. Munbodh recommends looking for a cheaper mortgage at least 14 weeks before the existing mortgage interest rate is due to rise.

Munbodh points out that half of UK households are regularly short of money halfway through a month. This would be even worse if a mortgage payer loses their job. To protect themselves, borrowers can take out mortgage protection insurance.

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