Remortgaging may save you £2,000

Carl Atkinson

3-minute read

Last updated on:

January 8, 2021

Could you be one of the 9 in 10 borrowers who haven't considered remortgaging?

A new study by TSB has found that on average British mortgage holders could save more than £2,000 on average a year by remortgaging. That's a massive £169 per month of your budget.

The big savings are due to the fact today's mortgage rates are much lower on average than those of a few years ago, when people were fixing for an initial period of 2 to 5 years.

TSB found that around 25% of homeowners believe remortgaging to be too stressful or daunting.

Another 14% said remortgaging would take too long and they wouldn’t know where to look for a new deal.

It seems a lot of people aren't sure how interest rate changes can put money back in their pockets as even though it's highly likely their mortgage is their biggest outgoing, around 30% don't know how much interest they pay each month.

You can find more info on how mortgage interest is calculated here.

Head of mortgages at TSB Nick Smith said: “Remortgaging might not be right for everyone, but it’s important to take a look at your options, know the amount of interest you’re paying and speaking to your bank or mortgage adviser about any changes that could save you money.”

If you want to learn more about remortgaging and if it's worth it for you go to our remortgaging guide or just see what rates are available to you today – it'll take less than 10 minutes.