Could you be losing thousands by not switching your mortgage?8th April 2016
Findings in a recent HSBC SVR report (press release issued 18 November 2015) show that borrowers are not switching to a new mortgage deal once their existing deal comes to an end. As many as 1.9 million people are paying standard variable rates, the interest rate set at the mortgage lender’s discretion.
With mortgages remaining low in early 2016, there are some really low deals for both variable rate mortgages and fixed rate mortgages of between 1% and 3%. These deals tend to only last for a few years, and at the end of them the mortgage holder is automatically switched back to a standard variable rate (SVR). With the average SVR currently set between 4% and 5%, this is quite a hike in monthly payments, and yet around a third of borrowers are failing to switch to a new deal, potentially costing them thousands each year.
It is important to start thinking about your deal approaching its end a few months before it is due to finish to avoid paying over the odds for your mortgage. At New Mortgage Solutions we make sure we notify you as your loan is coming to an end so we can talk to you about finding the next deal to suit your situation.
Check out our Guide to Mortgages to find out the different loan-types available.
Contact us for a free initial no-obligations chat today on 020 8295 2935