Staying on a Standard Variable Rate – the disadvantages
Have you thought about your re-mortgage options?
Recent consumer research carried out by Legal & General Mortgage Club, found that 41% of respondents were considering not re-mortgaging, and instead staying with their existing lender and accepting the switch to a Standard Variable Rate (SVR).
So why are people opting to stay? The research uncovered these reasons:
- Having debt
- Being financially impacted by Covid-19
- Worried about lenders scrutinising their finances
- Economic uncertainty
But did you know that switching to an SVR could mean facing up to a £2,500 annual increase in repayments?*
As an adviser I can help you find the right mortgage deal for your circumstances.
And, I can potentially save you £1,000s in unnecessary repayments.
There are plenty of great fixed rate deals available, including furlough-friendly mortgages and specialist lenders who can help borrowers with more complex needs.
* Example based on a borrower taking out a 90% mortgage at Which?’s average 2019 fixed rate (Best mortgage rates at 95% LTV revealed – Which? News) on the UK’s average house price in May 2019 of £230,049 and a current average market SVR of 4.51%