Mortgage apathy is costing homeowners up to $4500 per year. Homeowners have a Standard Variable Rate mortgage which comes after a fixed term special ends. These mortgages can be expensive, and switching would put more money in the homeowner’s pocket. Switching away is not as difficult as it sounds. A homeowner just needs to call their lender and ask for refinance options. Its recommended that a homeowner should start shopping for a new mortgage about 15 weeks before their fixed rate period ends.
- Some savings that is compared to an inflation-busting 15 percent pay rise could be achievable by thousands of Londoners every year on their mortgages.
- It is advisable that once a fixed, tracker, or discount mortgage deal ends, mortgage takers would be wise to switch from a lender’s standard variable rate (SVR).
- The fact that house prices vary significantly in different parts of the country means that the average amount homeowners expect to save by switching depends on their location.
“UK homeowners who switch from their lender’s SVR can save an average of £4,500 each year, according to online mortgage broker Trussle.”