Shop for remortgages and save a fiver a day

Monday, 21 January 2008 12:00

Homeowners could save £5 a day - or pay their mortgage off six years' earlier - simply by making overpayments or finding a better deal.

That is according to research by Abbey which claims £25 million goes down the drain every day because people are not on the right mortgage deal for them.

Homeowners aged between 24 and 35 emerged from a recent survey conducted by Abbey as the most pro-active group.

Just 35 per cent said they "buried their heads in the sand" when it came to reviewing their mortgage compared to 64 per cent of 55 to 64-year-olds.

Women were more likely to be on a uncompetitive rate with 31 per cent admitting theirs was not the best deal, compared to just 26 per cent of men, said Abbey.

The figures emerged after Abbey Mortgages questioned UK homeowners on their mortgage deal and five million admitted they were not on the most competitive deal. The bank estimates this is costing £5 a day.

Meanwhile, Abbey found, 47 per cent of the home-owning population, or 8.3 million people, admitted they did not review their mortgage regularly.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: "£5 a day or £140 a month on average is not an insignificant amount of money and we know for a fact that five million people could benefit immediately by shopping around."

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