Homeowners should consider changing mortgage provider

Published: November 12, 2007

Homeowners that do not look to change their mortgage providers in search of a better deal could potentially be throwing away hundreds of pounds a month, according to Mint Financial Services.

The independent financial advisory firm said that the savings that could be made from switching providers are extremely significant, particularly for those that have been paying standard variable rate for more than five years.

Adrian Kidd, an independent financial adviser with Mint, said that, depending on the size of the loan, it would be possible to save a much as £300 every month.

Commenting on a recent survey from mform which revealed that 40 per cent of mortgage holders have never changed their lender, he said: "That's a high percentage - it surprises me that it's that high but it doesn't surprise me that people don't do it.

"The cost savings can be significant, however, that said, you can go into a deal that might have a brilliant initial rate but you pay a lot of fees to get that deal. So although the cost-savings may be there month to month, the overall cost could leave you worse off."

He added that if more people considered switching mortgages, then it would force providers to ensure that the market remains as competitive as possible.