Borrowers with mortgage deals due to expire or who are on their lender’s default rate could save over £6,500 by switching to a fixed product.
That is according to Legal & General Mortgage Club which is encouraging people to remortgage after its research revealed moving from the lender’s Standard Variable Rate (SVR) could save borrowers more than £2,000 in just one year.
This is because, when borrowers reach the end of their term and do not remortgage, they automatically default to the SVR which is usually more expensive.
Indeed, if the Bank of England, as is being widely predicted, increases interest rates later this year, it is likely some lenders may also increase their SVR further.
With this in mind Legal & General Mortgage Club thinks many borrowers whose deals are ending or have lapsed to the SVR could benefit from switching to a new fixed-rate deal.
Its figures showed they could save £4,509 over two years and £6,530 over three years by remortgaging.
Switch now
Kevin Roberts, director of Legal & General Mortgage Club, said with rates close to historic slows and unlikely to improve further, now was the ideal time for borrowers to secure a fixed-rate deal on their mortgage.
He added: “Borrowers who are on an SVR or coming to the end of their term have the potential to save themselves thousands of pounds on their mortgage, which could easily pay for home improvements or that much longed-for family holiday.”
However, Roberts also explained these near all-time low rates will not last forever, and urged anyone looking to secure a deal to speak to a broker straight away.
He added: “Not only can brokers offer a far wider range of products and options for consumers which they may otherwise not have access to, or the time to find, but their invaluable expertise will be able to help you secure a great deal on your mortgage.”
