Fiver a day cost of uncompetitive mortgages

Homeowners are losing £5 a day because they are not on the most competitive mortgage deal, research has shown.

Figures from Abbey, the high street bank, revealed that the average homeowner could save more than £38,000 by switching to a better mortgage.

Five million mortgage payers told Abbey that they were not on the most competitive deal, while almost half (47 per cent) said they did not regularly review their home loan.

"£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," said Nici Audhlam-Gardiner, head of mortgages at Abbey.

With lenders tightening their conditions, it is becoming more difficult for borrowers to find a competitive deal.

The credit crunch has left mortgage providers feeling nervous about riskier customers and reluctant to pass on savings from the recent cut in interest rates.


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