Research by moneysupermarket.com has discovered that close to 29 per cent of UK homeowners do not assess the mortgage deals available to them when renewing an arrangement and instead keep faith with their current lender.
Furthermore, the price comparison firm claims that many British homebuyers are unclear about the “true cost” of a given mortgage deal and base their borrowing decisions on headline interest rates.
“Brits should be concerned – with so many people choosing their mortgage without comparing the market it is inevitable that many will not be getting the best deals,” said Louise Cuming, head of mortgages at moneysupermarket.com.
“The figures show the older generation has far more loyalty to providers and are less likely to shop around. I would remind them that loyalty comes at a price and that regardless of age everyone should shop around.”
Homebuyers across the UK could face further pressure on their finances in weeks to come as the Bank of England is widely expected to increase the cost of borrowing later this week.