Barclays says UK consumers failing to remortgage

Barclays says UK consumers failing to remortgage

Barclays claims that UK consumers are missing the potential to save money because they are unwilling to remortgage.

According to a survey by the bank, although nearly all homeowners (92 per cent) are trying to cut costs, most people do not realise how much they could save just by changing their mortgage.

Over half (58 per cent) of those surveyed had only ever changed their mortgage as a result of a house move, although three-quarters (74 per cent) said they would consider doing so in order to save up to £50 a month.

Most of those surveyed thought that they would save very little by changing their mortgage, while according to Barclays the savings could be substantial.

Barclays claims that homeowners in the UK could save up to £346m over the next two years by changing to the banks’ fixed and tracker rate products.

The bank said there is a ‘clear disconnect with people failing to realise how much they can actually save by swapping their mortgage’.

Remortgaging is also being promoted by the government, according to a report in the Daily Mail, but its proposals have been called a ‘smash and grab raid’ on pensioners’ incomes.

The new proposals would mean that homes would be included in a means test when it comes to paying for care, and this could force pensioners to remortgage their homes.

This would not only affect elderly people who need residential care, but could also affect those who wish to remain in their own homes but need help with tasks such as washing, feeding and clothing themselves.

In order to pay for this help they could be forced to seek equity release on their homes.

The recommendations by Andrew Dilnot are part of a report on the future of care services.

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