Those who have borrowed money based on the SVRs provided by their banks could stand to save a great deal if they remortgaged their home onto a new deal. It is estimated that about four out of every ten mortgage borrowers are stuck on their lenders SVR and while most have been happy to do so because of the interest rates dropping, now that they are rising again it may be time to move on.
When the economy dipped it offered some dirt cheap SVR rates that often times were cheaper than what many people could have received on their own. Therefore, it only seemed logical to stay on the SVR because there was no hassle for a great deal.
The mortgage market is not going to remain stale however and lenders are starting to offer more competitive deals that are starting to look more attractive than a lot of the SVRs that are out there. Therefore, millions of borrowers are likely paying more than they need to on their home mortgages.
HSBC found that a many as 3.6m borrowers could save a large amount of money as high as a thousand pounds or more simply by remortgaging and get out from under their lenders SVR. The lender stated that this means that about 80% of all borrowers could benefit by moving away from their SVR.
Therefore, with these facts in mind any home owner that is on a standard variable rate may want to look into their options to see if remortgaging their home is a viable option. Most people on SVRs are free to move without any early repayment charges so you might want to check to see if you are one of them. The pay off may be saving thousands by the end of next year.