Failing to switch mortgage products at the end of their term costs British homeowners £159m a year according to Mojo Mortgages, but new technology has been unveiled to put borrowers back in the driving seat.
The new tech (an industry first) from Mojo Mortgages enables homeowners to compare their existing lender’s offer against everything else in the market as they reach the end of their mortgage product’s term.
Until now, making an informed decision at the end of a product term has not been simple for borrowers, with many lapsing onto their lender’s standard variable rate (SVR) or just going with their product transfer offer. According to Mojo Mortgages, 1.2 million homeowners stay with their existing mortgage lender, and half of them are non-advised. Likely because, it’s easier to accept the lower product transfer rate from their lender than fall onto the SVR, or go through the hassle of trying to see what better deals are available.
Giving control to borrowers
Richard Hayes, CEO of Mojo Mortgages, said: “Mojo is making mortgages easier for everyone. That means offering a clear end-to-end service and saving people money.
“We found 93% of people offered a PT could save money by switching – the average is £22 extra a month, but we’ve seen people save up to £281 a month.”
The mortgage matcher tech is a game-changer as borrowers can, in a matter of minutes, make a side-by-side comparison of their current lender’s product transfer offer and the best rates available on the market. Being able to see how competitive their current lender’s deal is puts homeowners back in the driving seat, as they can make an informed decision on whether to accept a product transfer or choose to switch lenders.
“On average, customers could save a further £531.20 over a two-year fixed period,” according to Hayes. “We’re saving people literally hundreds of pounds with 15 minutes online. People do it all the time, with car insurance, phone contracts and credit cards. As a nation, we now need to start viewing remortgaging and product transfers in the same way.”