Almost half of Scots paying £2,300-a-year too much for their mortgage

Kevin Gardiner

With fixed rate mortgage offers remaining below 2 per cent, 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 per cent of households are parked on rates of 4 per cent and above.

Based on the average Scottish mortgage of £162,613, those who are paying a rate of 4 per cent 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 per cent.

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.”

There were 9,670 new homeowner remortgages completed in Scotland in the first quarter of 2019, 18.8 per cent 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 per cent said they were on a mortgage rate of 2 per cent or less, which is in line with the top deals on the market.

A further 30 per cent are on slightly more costly 3 per cent rates, while 38 per cent, the majority of those polled, are on 4 per cent. A further 5 per cent were on rates of 5 per cent 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 given 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 August 27th in 18 Waterloo Street, Glasgow, from 9am to 5pm.