The number of lifetime mortgage borrowers who changing lender has fallen 34% in a year, research from Responsible Life shows.

In the first quarter of this year, there were 331 lifetime remortgages of this type compared to 498 in the first quarter of 2020.

And in the year ending March 2021, switching activity dropped from 1,824 to 1,297 – a fall of 28.9%.

The lender points out, however, that in the first quarter of 2019 there were only 230 mortgage switches, which means there has been a 44% rise in the last two years.

Responsible Life executive chairman Steve Wilkie says that “persistent” misconceptions about switching may be behind this slowdown.

He continues: “The key message for consumers is that larger early repayment charges aren’t necessarily an obstacle to saving money and the younger you are, the less the interest rate needs to fall for switching to pay dividends.

“Lower rates have, in part, been due to the virtuous circle of greater volumes and increased competition. The popularity of lifetime mortgages has exploded in the last five years and product flexibility has never been greater.”