800,000 PEOPLE IN THE UK COULD ADD 7 WEEKS WORTH OF SALARY TO THEIR SAVINGS IF THEY REMORTGAGED TODAY
One third of the UK is said to be worrying about losing their job¹
At least 800,000 homeowners in the UK are sitting on an unfavourable standard variable² rate and wasting money paying additional interest
The average consumer could save £4,500 if they remortgaged today³, a collective saving of £3.6 billion
Trussle has new a remortgage calculator to help those who want to get serious about mortgage savings
Throughout the pandemic, there has been a nationally shared concern over job security and future financial scenarios⁴. This fear was confirmed last week when data released by the government showed that the number of people on payroll has dived more than 600,000 between March and May.⁵
Tied into money worries, it’s clear that people are wasting money without realising it, including the 800,000 homeowners on their SVR (standard variable rate)², and a tactical remortgage could see them adding 7 weeks of pay to their rainy day fund.⁶
While borrowers are unlikely to actively plan to slip onto an SVR, some invariably do when their fixed, tracker or discount mortgage deal ends. With the average salary in the UK currently standing at £30,420⁷ before tax, those who remortgage could look to pocket what is essentially a 15% boost to their paycheck.
This means they collectively risk missing out on £3.6 billion worth of savings by not switching to the best true cost fixed rate deal.
However, unemployment is very real for people across the country. For homeowners who have been made redundant and are suffering from a loss of income, and are concerned about their mortgage situation, there are options to consider that might reduce your outgoings even on a short-term basis. As a first port of call, mortgage holders should consult with a broker who will advise on their personal situation.
Options to consider if faced with unemployment may include taking a mortgage payment holiday and checking eligibility for a product transfer with your existing lender, which could mean a lower interest rate. Trussle’s internal data shows that homeowners who go through a product transfer save on average £326.31/month.⁸
Alternatively, if you decide to take a mortgage payment holiday, it’s important to note that your monthly payments will increase slightly once the payment holiday is up. This is because the additional interest is added to the total mortgage balance.
At this juncture, it’s also advisable to look into the mortgage protection insurance plan that you may have taken out when entering your mortgage. For information on the best insurance plans on the market, Trussle has a guide here.
Miles Robinson, Head of Mortgages at Trussle comments: “It’s clear that the reality of lockdown and the impact on the economy is hitting home for many, making planning for the future and effective saving more important than ever before.
Hundreds of thousands of homeowners are collectively missing out on billions of pounds by sleepwalking onto an SVR, and it’s a problem we’re passionate to resolve, especially during these tough times. We’ve built a remortgage calculator to show homeowners how much they could save by finding a better deal.
However, remortgaging isn’t a fix all solution and we know that unemployment is something that’s very real for our customers. To help people navigate these difficult times, we’ve developed a guide on unemployment and the mortgage process which can be found here.”
For further information, please contact:
We’ve taken extra care to ensure the information provided within this release is presented in a way that’s compliant with regulatory requirements. If you have any questions about how to repurpose this information or require any further assistance, please contact Leilah Mackie at Trussle.
Trussle conducted research online with 2,002 UK adults aged 18+ weighted to be nationally representative between 29 May – 1 June 2020, using insight agency, Opinium.
2. Source: FCA Mortgage Market Study interim report
3. Source: This calculation from Nov 2018 is based on average UK house price from gov.uk (£230,630) on a 60% LTV (= £138,378 loan). The SVR figure was collated via whole of market data extracted and analysed by Trussle, which showed average SVR interest payment per year was £6,957.39. Comparing this to best two year fixed interest rate for residential purchases in England at the time was £2,393.94 = yearly savings of £4,563.45 4. Source: https://www.ft.com/content/5483d718-8edf-4a25-94d5-4379c822c704
5. Source: https://www.bbc.co.uk/news/business-53060529
6. This calculation is based on median weekly wage (£585) multiplied by 7 weeks which equates to £4,095. The average consumer can save £4,500 - please see source 3
7. This calculation is based on median weekly wage multiplied by 52
8. Source: Trussle internal data as at 22.06.20. Savings in interest against the best comparable product from the same lender offered on the remortgage completion day.
Trussle helps people love their journey of owning a home. We’re your free online mortgage broker, helping you wherever you are on the ladder.
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In September 2016 Trussle launched an industry-first partnership with online property portal Zoopla, making it possible to find and buy a home in one seamless experience. Trussle is backed by some of Europe's leading technology investors including Orange Growth Capital, LocalGlobe, Ed Wray (founder of Betfair), Ian Hogarth (founder of Songkick), Seedcamp, and Zoopla Property Group.
Trussle is a trading style of Trussle Lab Ltd, which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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