Stipendium has launched Remerge, the industry’s first remortgage product with the guarantee that homeowners can remortgage unlimited times with no broker fees.
The typical homeowner remortgages four times during their 25 year mortgage term at an average total cost over that period of £9,960.
The broker fee will often be a large chunk of this at an average of £300 per transaction and therefore a lifetime cost of £1,200.
With 501,501 remortgages carried out in the UK over the last 12 months (BofE) – this alone is a consumer saving of an estimated £150m per annum if every borrower were to take advantage of the Stipendium Remerge product. And multiplied over a 25-year term that potential saving balloons to over £3.7bn.
Christina Melling (pictured), CEO of Stipendium, said: “Broker fees are a large proportion of a homeowners mortgage and remortgage costs as another layer in the huge overall cost of securing property funding.
“And on an ongoing basis, given the typical propensity to remortgage multiple times in our lifetime, we perhaps forget how much this element really costs us and Stipendium have set out to solve this for the consumer.
“When you consider that over 500,000 UK homeowners remortgaged in the last year with a typical broker fee of £300 each time, it’s a £3.7bn problem well worth solving.”
