£53m Wasted Annually Due To Homeowners Choosing To Not Remortgage, Plus More

In this edition, homeowners are wasting £53 million simply because they haven't remortgaged and we reveal the top 20 must have home features according to the people of the UK.

Also this month, the Bank of Mum & Dad will lend a total of £5.7bn in 2018 and we share some top tips to keep your home cool this summer.

£53m Wasted Annually Due To Homeowners Choosing To Not Remortgage

It's very easy to organise your mortgage when buying a new home, get a great fixed rate deal and then completely forget about it for years as you make your monthly payments.

New data from Dynamo, part of the mortgage broker Countrywide, has revealed just how much money is wasted by homeowners sitting on their mortgage after the fixed term.

When a fixed term mortgage comes to an end, if the owner has not lined up a new deal they will be moved onto the standard variable rate (SVR) of the lender.

The interest on an SVR will normally be considerably higher than the current deals available and the results of the research have shown this to be true.

According to Dynamo, homeowners that fail to organise a new deal before their current deal expires end up paying the price by an average of &371.

Most people don’t get around to finding a new mortgage deal until 6 weeks after the end of their original deal, meaning they’re wasting an average of &62 a week and collectively, the UK is wasting &53.3M on their mortgage.

For some, these unnecessary payments could be three times the amount, as some SVR’s stand at six per cent.

Chief Executive at Dynamo – Seb McDermott – said; “The research shows that far too many people are not switching mortgage deals in time. This can prove costly - to the tune of nearly &62 a week for the six week period - which is more than the average family food shop.”

In addition to the this, it appears that some may need educating regarding their mortgage payments, as separate research from MoneySuperMarket revealed that over 16% of homeowner have no idea at all what will happen when their fixed term comes to an end.

Sally Francis-Miles of MoneySuperMarket stated; “The UK mortgage market is worth &1.3 trillion so if even a quarter of those with a mortgage can save a few hundred pounds each, that’s a drastic amount."

“There are many tools online to look at available deals, and re-mortgaging is far simpler than getting a mortgage when buying or selling, especially if you’re able to switch to a better deal with your existing provider.”

Bank Of Mum And Dad To Lend £5.7bn In 2018

We’ve seen many schemes over the past 3 years to help young prospective property owners onto the ladder but new analysis has shown that the Bank of Mum and Dad is still required to help many across the line.

Legal & General recently carried out research that investigated the number of house purchases that would receive a parental cash boost and just how much money the parents would be providing.

According to the data, parents will need to help fund 1 in 4 property transactions this year and gift or lend a massive &5.7bn.

The report found that 27% of people looking to buy a home this year will receive a helping hand from relatives, a figure that has risen slightly by 2% in comparison to the same time last year.

In 2018 it is expected that the value of properties backed by parents will reach &81.7bn, an increase of &4.2bn over the last 2 years and 316,600 homes will be bought with funding from a family member, an increase of 18,600 since 2017.

It was also found that while help from parents continues to grow, the amount given will see a fall. Last year the average amount lent was just over &21,000, however, in 2018 this number has declined to &18,000.

When comparing the total amount lent to buyers, the &5.7bn predicted for this year is a &800 million drop from the &6.7bn peak seen in 2017, which does suggest buyers are relying less on family and friends to purchase a home but there is still some ways to go before the affordability issue is solved.

Group Chief Executive at Legal & General - Nigel Wilson – commented on the results of their research, he said; “The Bank of Mum and Dad remains a prime mover in the UK housing market and will lend the best part of &6bn to buyers this year, with over 315,000 transactions being underpinned by parental help.

“However, it’s clear that households are feeling the pinch, as BoMaD contributions have reduced by an average of 17% from nearly &22,000 to a still very generous &18,000. The fact that in 2018, 1 in 4 housing transactions in the UK will be dependent on the Bank of Mum and Dad, while hard-pressed parents are finding it more difficult to provide the funds to help their family with deposits, will further exacerbate the UK’s housing crisis.

"We need to build more homes for the young, old and families alike – more quickly and cost-effectively. Legal & General is playing its part by announcing an initiative to build thousands of new affordable homes.”

Top 20 Must-Have Home Features

When hunting for a home it’s best to figure out your wants and your needs so that you easily weigh up your options after you’ve viewed a few properties.

Whether it’s a strong internet connection or a bathtub, we all know which features we can’t live without, but what are the must-have features for buyers in the UK?

A new survey from Go Compare has quizzed over 2,000 Britons, in order to determine which features are vital to a prospective buyer.

Keeping warm during the colder months appears to be the main priority for homeowners, as central heating and double glazing take first and second place with 82% and 80% of respondents singling them out as must-have features.

Security is, of course, a huge selling point for any home and in regards to the recent survey, it was no different, as secure doors and windows took third place with 74% adding it to their ‘must have’ list.

With reports earlier this year finding that almost half of buyers wouldn’t even consider a home that didn’t come with a garden, it's no surprise that the fourth most popular must-have feature (69%) was a garden.

Support for all of the gadgets of a modern home is clearly vital, in fifth and sixth place was a good reliable broadband connection and plenty of electrical sockets.

What may be surprising or just a sign of the times was that a dining room was only considered a deal breaker by 40% respondents, taking 18th place in the top 20.

Although the majority of us carry a smartphone, landlines appear to still be in regular use, as 39% of survey participants stated they wouldn’t buy a house without one.

Spokesman for Go Compare – Ben Wilson – discusses the results of the survey, stating; “Buying a home is the biggest financial commitment most people will make. So, before viewing properties it is helpful to have an idea of the type of area and property you'd like to live in and think about your real must-have priorities.

“Connectivity and energy efficiency are two massive factors for anyone thinking about a move at the moment, while the number of electrical sockets is now more important than access to local amenities. Likewise, a broadband signal fast enough for streaming, and a reliable and a clear mobile phone signal are deemed home essentials today and sellers need to be wise to these new priorities.”

How to Keep Your Home Cool this Summer

Most of us spend the colder months of the year dreaming about the summer, but it can be easy to forget how inhospitable the heat can make your home.

Ensure you have all the fun in the sun with none of the discomfort with our guide to keeping your home cool this summer.

Use your windows and curtains
It’s a shame to shut all that natural light out of your house, but unfortunately, it comes with a good deal of heat. Closing all your curtains or following the sun’s progression across your house will seriously lower the temperature.

As soon as the sun has gone down, however, we would recommend throwing open the curtains and windows so that you can let in as much of that cool evening air as possible.

Build a makeshift air con
Can’t afford the electric bill and initial cost of an air conditioning unit? You can create your own air con by placing ice/frozen ice packs in a washing up bowl. You can then place it at an angle in front of a regular fan, which will circulate cold air around the room.

Switch off the electrical appliances
Every single one of your appliances gives off heat whilst they are on. During the hottest hours of the day, you should avoid using washing machines, dishwashers, hobs and ovens. Lighting should also be avoided when the sun goes down.

Drink plenty of water and eat cold
Staying hydrated and eating cold food like salad will help you to keep your body temperature down and avoids using any heat-generating appliances.

Sleep on the lower floor
Have you ever headed upstairs when it's sunny, only to find that the upper floors are far warmer than the lower floor? This is because heat always rises to the highest possible point. If you are struggling to sleep, ditch the sweltering upper floor and sleep downstairs – either on your couch or your airbed.

Insulate
You probably see a lot of advice articles recommending insulation for keeping your home warm in the summer, but did you know that it also keeps the heat out in the summer? If you don’t already have insulation in your home, it will practically pay for itself in the money saved on energy bills.