Large Percentage Of Residential Mortgages On Standard Variable Rate
Research has been carried out that reveals a high percentage of borrowers are on the standard variable rate with their residential mortgage. Whilst there are no doubt some borrowers who are on such a rate for a very good reason, it may be that some are paying more than they need to for their borrowing.
The research was undertaken with 2005 individuals between the 19th December 2016 and the 4th January 2017 by Opinium Research on behalf of London & Country Mortgages Ltd. The survey revealed that 36% of people with residential mortgages were on a standard variable rate. That equates to over 4 million households – a considerable number.
London & Country Mortgages Ltd estimate that such borrowers could, on average, save a potential of over £2,500 per annum in mortgage repayments if they were to transfer to another mortgage interest package. Again, that is a significant saving.
It probably does not come as a surprise to read that it is some people living in London who could make the biggest saving on their mortgage repayments followed by borrowers in the Midlands and the South of England and then up in the North of the country.
There are a number of ways that a borrower can try to source a more competitive mortgage deal. He or she could speak to their existing lender and see what they can offer. A borrower could also get in direct contact with a number of high street lenders such as banks and building societies. Another option is to do some research on the Internet that can be done 24/7. Another way is to speak to a mortgage broker that has access to an extensive panel of lenders and will do the research on your behalf to try to source a competitive residential mortgage interest rate package. When assessing how competitive the interest rate deal is, account will also need to be taken of any fees payable.