Borrowers missing out on large savings

Many mortgage borrowers in the UK are missing out on huge savings by failing to switch mortgage lender.

That is according to new research from mform, which shows that 40 per cent of British adults have never switched supplier.

In addition, 13 per cent switched deal but simply took up another one offered by their original lender.

Eamonn Rice, chief executive of mform, said that borrowers are missing out on massive savings simply through failing to shop around.

"The mortgage industry complains bitterly about so-called 'rate tarts' but the reality is that two out of five borrowers are far too loyal to their lender," he commented.

"Many may be deterred by the fear they will have to pay high fees to move but the reality is that they can make significant savings," added Mr Rice.

The firm claims that a borrower could save up to £2,130 per year simply by switching to a different lender.

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