Remortgaging today to a fixed rate product before their December monthly mortgage payment could effectively make Christmas day free for borrowers on a Standard Variable Rate (SVR), according to analysis from Habito.
Christmas costs an average of £812 per family, and the average Habito customer who moves from a SVR to a fixed rate saves £264.54 on their mortgage per month. Just in the first month, that would cover the costs of a Christmas tree and decorations (£45), travel to see family and friends (£80) and Christmas dinner (£136).
There are estimated to be 4 million households in the UK lingering on their lenders (typically more expensive) Standard Variable Rate, after their initial rate of two, three or 5-years has expired. Since the Bank of England’s November 2 rate rise, the cost of not remortgaging has gone up a further 0.25% or an additional £20 a month on average, per household.
Daniel Hegarty, CEO of Habito, said: “No one should be left paying over the odds on their mortgage, especially at Christmas time when household budgets are under even more pressure than usual. Technology has finally come to the mortgage industry to make switching your mortgage is as easy and commonplace as switching your utilities or broadband.
“As well as a festive bonus, remortgaging can really be the gift that keeps on giving – allowing you to save money each month, adding up to thousands of pounds saved over the course of a year.”