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Landlords pay heed and remortgage

Date: Thu, 15 Sep 2005

New landlords would be well-advised to remortgage their properties as soon as possible, ands make huge savings as a result.

Recent figures from Abbey show that around a third of all people coming to the end of their current mortgage deals will make the mistake of not remortgaging, and between them lose around £20 million each month.

Apathy and a lack of awareness on the part of borrowers would appear to be the problem, with 13 per cent not knowing what their current interest rate is, while worryingly only one in three borrowers know when their current deal expires.

Gary Hockey-Morley, Abbey's director of mortgages, said, "All borrowers coming to the end of a deal should look around for their next mortgage deal as soon as they can. Shopping around is crucial because rates and fees vary greatly between lenders and can change quickly.

"It is really important that borrowers find a deal that suits their individual needs - remortgaging is easy to do and could result in a significant monthly saving."

A breakdown of Abbey's figure shows that seven per cent of people are wholly unaware of when their current deal finishes, while 12 per cent only know the year that it ends and 16 per cent know to within a few months.

Abbey estimates that, for every month spent on an industry average standard variable rate rather than remortgaging to a better rate, a borrower can spend up to £148 extra.

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