Borrowers on a standard variable rate (SVR) mortgage could save up to £6,530 by remortgaging to a new deal, Legal & General Mortgage Club has found.
Following the Bank of England’s recent decision to hold interest rates at the current level, customers who remortgage from a lender’s SVR to a fixed product could save £4,509 over two years and £6,530 over a three year period.
With speculation of an interest rate rise later this year, borrowers coming to the end of their existing terms or already on an SVR would benefit from switching to a new fixed rate deal now. This would save some borrowers over £2,000 a year on their monthly mortgage repayments.
Kevin Roberts, director, Legal & General Mortgage Club, said: “With rates still close to their historic lows and unlikely to improve further, now is a great time for borrowers to secure a fixed rate deal on their mortgage.
“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.
“These near all-time low rates will not last forever, so any borrowers who are looking to secure a good deal should speak with a mortgage broker now.
“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.”