Vehicle breakdown organisation the AA has entered the mortgage market.

The loans, available exclusively to its members, do not offer free help on the hard shoulder of the M4, but do come with free home emergency and repair cover, and central heating emergency and repair cover for 12 months, plus a 15% discount on home insurance.

The mortgages themselves are provided by Bank of Ireland and are aimed at the remortgaging market.

The AA estimates borrowers could be saving around £1,625 each year by switching provider. This is based on a £171,200 loan comparison between the top six lenders.

A Populus survey of 4,688 AA members in June found that the average AA member has been on the same mortgage deal for over five years, while over a fifth have not reviewed their mortgage for over  ten years.

Michael Johnson, director of financial services at the AA, said a combination of high fees and a lack of information stop borrowers from switching to a better deal.

He said: “This mortgage range has been developed to respond to the needs of our members, by removing hidden costs and providing simple, straightforward information, to reduce the hassle of remortgaging or buying a home.

“The AA is committed to being the pre-eminent membership organisation in the UK and a mortgage offer for members will help achieve that. The mortgage range is a strong addition to our existing financial services offer.”

AA members looking for a new deal would take a 15-minute call with one of the team of mortgage consultants to establish whether they could be saving money on monthly mortgage repayments.

Members need to provide their AA membership number, approximate value of their home (or purchase price, postcode and year of purchase), current mortgage balance and interest rate they are paying.