Best rates ignored

Four in 10 Scots homeowners losing out on £2,300 a year

Kevin Gardiner: substantial savings

Four in 10 Scottish homeowners could be £2,300-a-year better off by switching their mortgage, according to new research.

With fixed rate mortgage offers remaining below 2%, the number of Scots remortgaging to a better deal has reached a 10-year-high.

However, a poll carried out on behalf of independent mortgage broker Aberdein Considine has revealed that 43% of households are parked on rates of 4% and above.

Based on the average Scottish mortgage of £162,613, those who are paying a rate of 4% or higher are losing out on at least £191.71 every month.

Over a whole year, they could be £2,300.51 better off by switching to the current average fixed rate, which sits at 1.62%.

Kevin Gardiner, mortgage director at Aberdein Considine, which has a network of independent advisers throughout Scotland, urged people to apply a “compare the market mindset” to their home loan. 

“Most people will shop around online to save £100 here or there on things like car insurance or energy suppliers,” he said.

“Yet when it comes to mortgages – for many the most expensive monthly outgoing – people seem less likely to shop around.

“The reality is that most people can save money – and in many cases the annual saving would be substantial, because the mortgage market is awash with brilliant fixed-rate deals at the moment. 

“With a No Deal Brexit on the horizon, nobody knows how much longer these deals will be around for, so now is  a good time to think about locking in to a new, lower fixed rate to give you both a saving and some peace of mind.”

The reality is that most people can save money

– Kevin Gardiner

There were 9,670 new homeowner remortgages completed in Scotland in the first quarter of 2019, 18.8% more than in the same quarter in 2018.

This is the highest volume in a decade, when 9,850 remortgages were completed in the third quarter of 2009 as the credit crunch sent shockwaves through the economy.

Of the 1,003 people surveyed by Aberdein Considine, 27% said they were on a mortgage rate of 2% or less, which is in line with the top deals on the market.

A further 30% are on slightly more costly 3% rates, while 38%, the majority of those polled, are on 4%. A further 5% were on rates of 5% or higher.

Mr Gardiner added: : “I would urge anyone with a mortgage to check what interest rate you’re on and whether you’re paying more than you need to.

“Speaking to an independent mortgage adviser is a great place to start to find out your options.”

Throughout August, Aberdein Considine is running free consultations for homeowners to give them a “second opinion” on their mortgage.

Advisers will be on hand to compare 15,000 deals across every major lenders, plus some exclusive deals.

The first event takes place on 27 August 27 at 18 Waterloo Street, Glasgow, from 9am to 5pm.

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