Why the fickle borrower is such a happy one

Loyalty is a virtue in pets and lovers, but not displayed by mortgage borrowers to lenders.

One homeowner who appreciates the importance of not being faithful to one lender is David Evans. The 53-year-old secondary school teacher has lived in the same three-bedroom detached house in Warwickshire for the last 12 years.

He and wife Gillian, also 53, have had at least five mortgages during this time.

David says: 'It all started after the initial offer with our first lender, a building society, ran out. It was providing its new customers a much better rate than the rate our mortgage had reverted to once the three-year fixed rate had expired. We wrote to the society and asked time and again whether we could switch to this deal, but it refused, so we went elsewhere.'

Unlike the millions of borrowers who end up paying a standard variable rate on their home loans once any initial offer has expired, David has no qualms about moving the debt: 'The problem is, lenders chase after new customers with good deals, but tend not to look after existing customers to the same degree.'

He believes many borrowers accept poor deals because of a misplaced loyalty to their bank or a fear that moving will be costly or complicated.

'In reality, you can find deals where fees are paid for as part of the offer. Also, the process is very smooth and is not at all complicated: the whole thing can be completed within six weeks of getting the ball rolling,' he says.

David also says that because he and his wife have a high level of equity in their home, the valuation process is often little more than a formality.

Usually the couple's financial adviser, from independent mortgage specialist London & Country, will get in contact a few weeks before their current deal expires. Assuming their existing deal carries no penalties for deserting it, their adviser will then search the market for the best remortgage package.

Their most recent move was from the One Account to an exclusive deal offered by London & Country with First Direct. The One Account interest rate was 4.95 per cent, compared with First Direct's 4 per cent.

The switch means that within a year, the couple expect to have amassed interest savings of about £1,500. 'There was no reason as far as we could see to stay with the One account,' says David.