The disadvantages of staying on a Standard Variable Rate (SVR)

Have you thought about your re-mortgage options?

Recent consumer research carried out by Legal & General Mortgage Club, found that 41% of respondents were considering not re-mortgaging, and instead staying with their existing lender and accepting the switch to a Standard Variable Rate (SVR).

So why are people opting to stay? The research uncovered these reasons:

  • Having debt
  • Being financially impacted by Covid-19
  • Worried about lenders scrutinising their finances
  • Economic uncertainty

*But did you know that switching to an SVR could mean facing up to a £2,500 annual increase in repayments?

As an adviser I can help you find the right mortgage deal for your circumstances.

*And I can potentially save you £1,000s in unnecessary repayments.

There are plenty of great fixed rate deals available, including furlough-friendly mortgages and specialist lenders who can help borrowers with more complex needs.

Contact me today to find out how I can help.

* Example based on a borrower taking out a 90% mortgage at Which’s average 2019 fixed rate (Best mortgage rates at 95% LTV revealed – Which? News) on the UK’s average house price in May 2019 of £230,049 and a current average market SVR of 4.51%

*Your home may be repossessed if you do not keep up repayments on your mortgage

*You may have to pay an early repayment charge to your existing lender if you remortgage

 

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