New research from MoneySuperMarket has revealed that almost half of all homeowners polled view remortgaging negatively, with three in five unsure what the term ‘remortgaging’ actually means.
According to FCA estimates, as many as 800,000 consumers are currently spending more on their mortgage than necessary and that switching could result in average annual savings of £1,000.
However, uncertainty over the meaning of remortgaging could be holding borrowers back from realising such savings.
MoneySuperMarket found that 45% of people surveyed assigning negative connotations to the term, with one in five embarrassed to admit they’ve remortgaged and 23% thought you would only remortgage to borrow extra funds. 8% said that you would have to be in a ‘desperate’ situation to remortgage.
This is despite 57% saying they have remortgaged their property, with 9% doing so for the purpose of releasing funds and 21% to get a better rate.
Jameel Lalani, head of mortgages at MoneySuperMarket, commented: “We’re used to talking about switching our energy supplier, current account or car insurance – but when it comes to our mortgage, for many it seems like an alien concept.
“It’s true that remortgaging can mean borrowing against your property – which might be an option for people who want to pay for home improvements or other debts. More often than not, it simply means changing your deal, either via switching to a new lender, or by moving onto a new deal with your existing lender.”