Three in five consumers are unsure of what ‘remortgaging’ means, research by MoneySuperMarket has found.
Nearly half (45%) of people assigned negative connotations to the term whilst one in five were embarrassed to admit they have remortgaged.
Almost a quarter (23%) believed that one would only remortgage to borrow extra funds.
The research also revealed that 8% of consumers believed one had to be in a ‘desperate’ situation to remortgage.
Jameel Lalani, head of mortgages at MoneySuperMarket, said: “We’re used to talking about switching our energy supplier, current account or car insurance – but when it comes to our mortgage, for many it seems like an alien concept.
“It’s true that remortgaging can mean borrowing against your property – which might be an option for people who want to pay for home improvements or other debts.
“More often than not, it simply means changing your deal, either via switching to a new lender, or by moving onto a new deal with your existing lender.
“If you choose not to do anything, your lender will often move you on to its variable rate once your initial deal has finished – which is almost always less competitive.”
Over half of those polled thought they had remortgaged their property, with 9% doing so for the purpose of releasing funds and 21% to get a better rate.
A fifth (22%) of those who have owned a house for three to five years are embarrassed by the idea of remortgaging.