Homeowners whose mortgage deal has come to an end and are now on one of the six big lenders’ revert or standard variable rates (SVR) could save £3,528 on average each year. Research conducted by Habito found that just under half of the borrowers they spoke to were either paying their lender’s highest mortgage rate or were uncertain of the rate being paid.
Oliver Dack, a mortgage adviser at Mortgage Advice Bureau said: “Rising inflation has seen the cost of living increase for all of us and with further tax increases on the way many consumers will be looking to reduce their monthly outgoings. A mortgage is often the greatest monthly cost for most homeowners. There are huge savings to be had for the majority of those with a mortgage. Homeowners on their lender’s reversion rate can easily save significant sums when switching to a lower rate. And those on a current fixed deal may find that, even after paying an early penalty charge, there are still savings to be made. A mortgage broker can help to calculate these potential savings and identify those lenders most likely to accept a borrower.”