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Scottish borrowers are most active mortgage switchers

Mortgage borrowers in Scotland are the most proactive when it comes to switching products, according to new research.

A YouGov study, commissioned by online mortgage broker Trussle, found that 41% of people in Scotland with a mortgage have switched lender to secure a more favourable deal at the end of a fixed period.

This is compared to a UK average of 28%. The next highest proportion of switchers was recorded in East England at 39%.

Survey participants based in the West Midlands are the least likely to switch, with just 11% saying they have changed provider for a more attractive rate.

One reason for this is due to lender loyalty - 25% of West Midland borrowers who haven't switched said it was out of loyalty to their current lender. 

According to Trussle, last August’s Bank of England base rate reduction pushed the average annual savings for switching from a Standard Variable Rate to a market-leading fixed rate up to £3,500.

Despite record-low mortgage rates, the firm says that only a quarter of the population understand the relationship between a base rate change and their own mortgage.

It says that this lack of awareness is one of the reasons why people are not switching to more favourable deals.

“The majority of homeowners across the country have never switched mortgage provider to secure a better deal, and that’s a worry,” comments Ishaan Malhi, chief executive and founder of Trussle.

“December saw more homeowners switch mortgage than any other month during the last eight years, thanks to historically low interest rates, but these people still represent a small fraction of those eligible to switch to a more suitable deal.”

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