Research has found over a third of homeowners in the UK are currently under the wrong mortgage deal, and it is costing them valuable money during a time when the cost of living is rising.
The biggest offenders are Standard Variable Rate mortgages (SVR), which tend to have higher rates. 36% of homeowners are on a SVR and it could be costing them up to £2,500 a year, a combined total of £2.78 billion per year. Whilst these 1.1 million homeowners are paying over the odds, the research also found that 3.4 million of us don’t know our mortgage rate.
People on SVR mortgages are at risk of further increases if interest rates rise, which is a possibility as inflation is at its highest point since June 2014.
There is a lack of awareness around how much could be saved. People could potentially save hundreds or even thousands of pounds a year by re-mortgaging to a new deal – but most people (58%) have never tried to re-mortgage to save money even though research shows that consumers believe they are paying too much for their mortgages.
With the cost of living on the rise and day to day expenses like energy prices soaring, this is an area where people could be saving a significant amount of money each year. And now is the perfect time to remortgage whilst the interest rates are low and get yourself a fixed rate deal!
Could you save money each month? Would you like your mortgage reviewed? Get in touch today! There are many aspects that need to be considered to ensure that you save money through a remortgage but you have nothing to lose by having a chat. Call us on 01639 262222 or click here to contact us.
*Your home may be repossessed if you do not keep up repayments on your mortgage.