With interest rates at their lowest levels for some years, borrowers are often content to stick with their existing mortgage deal. However, new research from Citizens Advice reveals that being a long-standing loyal customer of your mortgage provider might be costing you money. What’s more, they calculated that 1.2m mortgage holders could be better off by shopping around for a new deal.
Their conclusions are based on homeowners who remain on their lender’s standard variable rate after their two-year fixed term mortgage deal has come to an end. The penalty for staying with their existing lender can be around £439 a year. For first-time buyers, who are likely to have a bigger mortgage outstanding payable over a longer period, the figure based on the same scenario is even higher at £1,359 a year.
As the monthly mortgage repayment is often a family’s major outgoing, it’s a good idea to review your mortgage from time to time. If you’d like some advice please contact us.
As a mortgage is secured against your home, it could be repossessed if you do not keep up mortgage repayments.