Homeowners are missing out on remortgaging. Perhaps there is not a more needed time than now to discover a savings and pay less on one’s monthly repayments. Interest rates are low, and many lenders are competitive and releasing remortgage products that are attractive to borrowers at such a time as now with the global pandemic ongoing. However, it appears through recent data that homeowners are choosing to let their current mortgage deal lapse and are content to move onto their lender’s risky standard variable rate (SVR) rather than seek the possible benefits of a remortgage.  

A lender’s SVR might be low, and yet homeowners are likely to save more by getting a lower rate remortgage. In addition, by getting a fixed rate remortgage they could lock in that savings level rate for two to five years. 

The recent report from MoneySupermarket revealed that 1.3 million mortgage holders have moved to a SVR and are likely spending an extra £175million a month because they did not choose to remortgage. The average extra spending on a SVR is said to be £133.46 a month. That is the average, which means there are many that could be paying that and more. No one would likely choose to pay more than they have to, so it is a matter of taking action and shopping around to see what savings are available from remortgage brokers and lenders.

In response to the data collected from the recent survey, Emma Harvey, consumer affairs spokesperson for MoneySupermarket remarked, “Standard variable rates on mortgages are notoriously expensive.

“With 15 percent of those remortgaging being unaware of how they work, automatically lapsing onto them is a common and costly financial pitfall. Regardless of whether you’re on an SVR mortgage or another type, there could still be significant savings to be made when your initial mortgage deal comes to an end.”