Mortgage switching inertia – many losing hard cash as a result
Once mortgage borrowers come to the end of their fixed discounted rate, they could see themselves paying a hefty price as they are automatically moved onto the lenders Standard Variable Rate (SVR).
Recent industry assessments suggest that the SVR charged by the big six lenders who account for 69% of the market collectively was around 2.5% higher than the cheapest fixed rate. *
Inertia and lack of awareness tend to be the main factor preventing borrowers from re-mortgaging to a new deal.
Reviewing options is time and effort well spent, though. Around 2 million borrowers who are eligible to re-mortgage to a new deal could save a vast amount of money. Industry assessments suggest timely re-mortgaging could save over £3,000 a year comparable to a fixed rate.
Take action now, check when your fixed rate is due to end and make a note when to action it.
A good mortgage advisor will help you through the process, and ensure you are advised on your most suitable options.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.
Past performance is not a reliable indicator of future performance.
* Source Trussle Mortgage saver review May 2017
Article supplied by Clarke Nicklin