New research from the Citizens Advice Bureau has shown that one out of ten people in the UK are paying approximately £1,000 per year more than they need to by staying on a standard variable rate mortgage. *
Their research also showed that on average people could save around £400 per year1 by switching mortgages. This often occurs because once an introductory deal has ended a borrower’s mortgage gets automatically put into a standard variable rate, SVR, mortgage, which it may not, depending on market conditions offer such good interest rates.
The CAB found that many people who changed from a two-year fixed term mortgage to an SVR - around 1.2 million people, paid on average £439 more per year. 2
The Financial Conduct Authority feels that it should be made clearer for borrowers once their deal has ended by naming their new rate as ‘expired rate’ rather than one called ‘SVR.’ 2
Gillian Guy, CEO of Citizens Advice stated: ‘More than a million loyal mortgage customers are being stung with higher interest charges when their fixed deals end. Buying a home is a major life decision and borrowers taking out their first mortgage often spend a great deal of time working out the best option for them.’
‘Our research shows that many who choose fixed rate mortgage deals face steep price hikes once they expire. But two thirds of borrowers say their lender has never told them they could save money by switching.’
‘Lenders must be more upfront and provide their customers with clear information about what could happen to the cost of their loan once the fixed term period ends,’ she added. 2
To find out what current deals are available please follow this link or call us on 01392 453568 and we will introduce you to Embrace Mortgage Services who will provide you with tailored mortgage advice based on your personal situation & requirements.
Embrace Mortgage Services initial mortgage consultation is free. They will charge a fee of between £399 and £699 upon mortgage application. Depending on the amount of research and administration required.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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