New research from Abbey shows that 40 per cent of UK homeowners have switched lenders to obtain a better deal at least once in the last five years.

The survey suggests that most people remortgage in order to access a better mortgage rate and reduce monthly payments (66 per cent)., while others did so to borrow more money against the property (19 per cent), and some to obtain a mortgage with more features or flexibility (eight per cent). Just two per cent of those who said they had switched lender did so because they were unhappy with their existing company.

Gary Hockey-Morley, Abbey’s director of mortgages, said: “More and more people are now re-mortgaging to help them change their lifestyle or career and to own their own home quicker, not just to reduce their monthly repayments.

He added: “I’d urge anyone considering changing their mortgage to talk to lenders, like Abbey, who have deals that offer free legal and valuation fees as well as good rates.”

Of those people who have not previously, just under two thirds (65 per cent) said they would consider doing so this year, with four per cent saying they would use remortgaging as a way to start a new business, or give up work and take time out, or start a family.

Recent figures from the Council of Mortgage Lenders (CML) showed that the number of home loans specifically for people re-mortgaging accounted for 48 per cent of all home loans in the first quarter of 2005, up from 43 per cent over the same period in 2004.

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