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.”

Contact

For further information, please contact:

Emily Coyle at [email protected] or Leilah Mackie at [email protected] 

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.

Methodology

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.

1. Source: https://www.mentalhealth.org.uk/news/more-third-uk-adults-full-time-work-are-worried-about-losing-their-jobs

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

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2019  

7. This calculation is based on median weekly wage multiplied by 52 

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2019  

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.

About Trussle

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.

See how much you could borrow or save in minutes. Whether you're looking at homes for the first time, or you're looking to remortgage for the fourth time. Our quick online calculators will help you take the next step on your home ownership journey.

Say goodbye to paperwork, long phone calls, and being left out of the loop. Say hello to a quick, jargon-free, personal service that you can access from anywhere at any time. We’ll help you find and secure your mortgage entirely online.

Relax while we ensure you're always on the right deal. We compare your mortgage with the latest deals on the market every day, and we’ll alert you the moment it's time to switch to a more suitable deal. That way, you'll never pay more than you should to own your home.

Did we mention that our service is completely free? Join Trussle to see where your home ownership journey could take you.

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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