It seems Britons are more interested in spending time on planning a holiday than maximising the savings from a mortgage. A study by Fool.co.uk found that:
- 36% of customers spend more than 10 hours selecting a holiday. Only 21% would spend more than 10 hours selecting a mortgage.
- 41% of customers do not shop around for the best financial products because they don’t have enough time.
This is despite the fact that looking for the best deal online and on the high street only needs to take a couple of hours. For a couple of hours work, the savings on a large mortgage can be up to £2,000. For 10 hours, a £2,000 saving equates to an hourly rate of £200 an hour. (If people are too busy they must have a good job) Reports show that many homeowners never remortgage and end up on their lenders Standard Variable Rate SVR. By remortgaging they could take advantage of lower interest rates and very significant savings
Shopping Around
- Men are more likely to shop around than women. 55 per cent of women say they do not shop around compared to just 35 per cent of men.
- One significant factor is that people get overwhelmed by the choice of financial products on offer. That shouldn’t stop you talking to at least 4 possible lenders to learn what they offer.
- Like the old graffiti ‘Be Alert – your country needs Lerts’. You are going to be stuck with your mortgage for a long time (25 years perhaps) so it makes sense to check out the deal as best you can.
- Talk to friends and relatives who have been through a similar process. It is a good time to listen to others before you make your own commitment.
- Interest rates are not the ‘be all and end all’. You need to consider the whole package including fees, customer care, repayment levels, flexibility and appropriateness for your own circumstance.
