Property-owners seeking better mortgage deals

Posted: 06 Feb 2008 11:43:22 GMT

A considerable number of property-owners in the UK are choosing to switch mortgage providers rather than stick with an unsatisfactory deal.

A considerable number of property-owners in the UK are choosing to switch mortgage providers rather than stick with an unsatisfactory deal.

That's according to research from MoneyExpert, which found that 1.4 million people have moved to a new mortgage deal over the last six months.

The study revealed that three per cent of the nation's adult population have moved to a different lender since June of last year, which accounts for 11 per cent of all mortgage-holders.

Sean Gardner from the comparison site said that property-owners may have been looking to move onto a fixed-rate deal amid high interest rates, or for a more affordable mortgage following the end of a fixed-rate term.

"But whatever the reason if you swap mortgage provider the process is unlikely to be cheap," he warned. "Application fees are rising and most are now uncapped, meaning you're likely to pay a proportion of the total amount you borrow. That means switching mortgage could cost you thousands of pounds."

The Bank of England is due to announce its February interest rate decision on Thursday, February 7th. Many economists are expecting a quarter percentage point cut to 5.25 per cent to ease housing market pressures.

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