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Remortgaging could save UK mortgage holders billions

Date: Fri, 23 Sep 2005

Misconceptions about remortgaging are costing mortgage holders billions each year, new data has revealed.

Many current borrowers do not realise the huge savings they could make through remortgaging, believing the process to be too time consuming, or even too expensive, according to figures released by Bradford & Bingley.

However, mortgage holders could save £6 billion a year collectively by switching from the standard-variable rate to a market leading deal.

"One of the biggest factors affecting homeowners' propensity to remortgage is the belief that the process is too time consuming and taxing," said Bradford & Bingley's head of mortgages, David Bitner.

"In reality though, once you’ve shopped around or visited a mortgage broker to find the best deal, the process is pretty simple and hassle-free and takes typically four to six weeks."

The report shows that 30 per cent of mortgage holders believe shopping around for a new mortgage would be too time-consuming, while 28 per cent believe that it would actually be more expensve to remortgage.

Statistics also revealed that many people had never even considered remortgaging, while some did not realise they could remortgage without moving house.

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