Brits ‘paying the price’ for bad mortgage deals

British consumers are paying the price for failing to secure the most competitive mortgage deals available, it has been claimed.

With debt management continuing to be a problem for millions of UK consumers, figures from Abbey have demonstrated that mortgage borrowers are paying around £5 million more collectively than they need on a daily basis.

In fact, an estimated five million people are aware that their current mortgage deal is not the most competitive on the market, but have so far failed to take action on the issue.

Abbey suggests that each individual who could have a better mortgage deal in place is overspending by around £5 each day and could be hindering their own struggles to become debt free.

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.”

Including mortgage arrears, the typical UK household has an outstanding debt management burden worth close to £56,000, according to figures from Credit Action.