Some mortgage borrowers may find they could save around £3,500 over two years by moving off a standard variable rate (SVR) onto a new deal, research suggests. Working with L&C Mortgages, Experian calculated that some homeowners may be able to save over £3,500 if they switched to a new fixed-rate two-year offer.
The calculations were based on certain assumptions and so the potential savings that someone could potentially make by moving off their SVR will depend on individual circumstances. The research was based on someone having a £150,000 25-year mortgage loan. The calculations were made in early September and looked at particular mortgage deals.
Researchers also took into account a £999 arrangement fee for taking out the new deal, but still found that someone could end up £3,562 better off over the two-year period, based on the specific calculation. Experian said that, according to its data, nearly 300,000 homeowners could be coming to the end of their fixed-term deal in the next three months, and without re-mortgaging they may roll over onto their existing lender’s SVR.
