Best Mortgage Deals for Scottish Homeowners
The results of YouGov research has revealed that mortgage borrowers north of the border are Britain’s most proactive in searching out the best mortgage deals.
People in Scotland are renowned for being canny folk, and a new property study bears this out.
The study, which was done by YouGov, revealed that almost half of people in Scotland (41 per cent) who already had a mortgage had switched their provider when a fixed period came to an end to ensure they got a better deal. In second place was the east of England, where 39 per cent of people admitted to making a switch. Both of these figures were substantially higher than the British average of 28 per cent.
In contrast, people in the West Midlands region are the most likely to still have an expensive SVR (Standard Variable Rate) mortgage. Only one in ten people (11 per cent) said that they had switched their mortgage to get a more attractive deal.
One explanation for the people of the West Midlands’ reluctance to change mortgage provider could be lender loyalty, as the region’s residents were most likely to use this as their reason for never switching compared to other areas. A quarter of West Midlands’ borrowers (25 per cent) cited this reason, compared to just 14 per cent of Scottish borrowers.
Also below average in the mortgage-switching stakes were the East Midlands, where only 23 per cent of people said they had made a beneficial change, the North West at 25 per cent, the North East also at 25 per cent, Yorkshire with 26 per cent and the South East at 27 per cent.
Last August, the average yearly savings achieved by switching a SVR to one of the leading fixed-rate products went up to £3,500. This was as the first adjustment was made in more than seven years by the Bank of England to the base rate. This went from 0.5 per cent to 0.25 per cent.
Record-low rates followed, but the research found that only around 25 per cent of people understand the relationship between their mortgage and a change to the base rate. It is believed that such a lack of rate awareness is influential in why West Midlands people are not switching, as just around one in five people (19 per cent) from the area understands this relationship. This compares to a UK average of 28 per cent.
Last December say the most mortgage switches in eight years as a result of low interest rates, although the people who took advantage of market conditions were still just a small minority of the eligible population.
If the idea of switching your mortgage has made the prospect of your next dream property move more appealing than ever, get in touch with the Coulters team for the best advice that Edinburgh estate agents have to offer – call 0131 603 7333.