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&#39Explain savings in switching mortgages&#39

Only 20 per cent of borrowers believe changing their mortgage would make them better off, according to The Mortgage Operation.

But TMO says the maj ority of borrowers on variable-rate mortgages, who account for more than 60 per cent of all borrowers, could save money by changing mortgages.

The network says the survey demonstrates a high level of confusion surrounding mortgages and it is urging brokers to explain the savings clients could be missing by sticking with the same mortgage.

The NOP survey of 1,000 borrowers showed that many vastly underestimate the choice of products available, with 18 per cent believing there are fewer than 500 mortgages. Just 8 per cent knew there are more than 4,500 products.

Half of borrowers think changing jobs would have a positive impact on their fin ances, while 14 per cent believe a change of partner would boost their financial health.

TMO managing director Mark Charlesworth says: ” Borrowers can quite easily remortgage and save themselves hundreds of pounds a year. It is vital brokers re-educate their clients about the choices they have and ensure they have the capability to offer them this choice.”

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