A staggering £2.78 billion of interest is being paid by people on the wrong mortgage deal!
This is because according to latest research* 36% of UK homeowners are sitting on their lender Standard Variable Rate (SVR).
When you took out your mortgage there was a good chance that you were given an initial fixed term deal over 2,3 or 5 years. At the end of the initial fixed term you will usually have been switched automatically to the lender’s Standard variable Rate (SVR) of interest. The current average lender SVR is 4.40%.
If this is you there is a good chance your monthly mortgage payments are a lot higher than they need to be.
You are not alone. 4 million UK homeowners are in the same boat.
Independent Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice.