Mortgage payments are often the biggest monthly outgoing for a household with the average monthly repayment standing at £391*. Households with a standard variable rate (SVR) mortgage who switch to a good value deal using the new Which? Mortgage Search on www.switchwithwhich.co.uk
Which? estimates that approximately one third of mortgages are charged at the SVR. People with SVR mortgages are the most likely to be able to gain by switching as they are paying over the odds and usually don’t have redemption penalties to pay. Lenders often reserve their best, low rates for new customers and, when the introductory deal runs out, the customer is put onto a higher rate (the SVR). The companies rely on customers’ inertia and belief that finding a new mortgage is complicated.
The Which? Mortgage Search makes it easy to see whether it’s worthwhile switching It searches a constantly updated database of more than 8,000 mortgages to find deals that could save you money. It shows how much you’d save on your monthly payments and the total possible saving, including the costs involved in switching. In addition, there’s a whole host of useful Which? information about mortgages and the switching process.
Melanie Green, principal researcher at Which?, says:
"With £2.2 billion and an average of £475 per household to be saved this year alone on expensive mortgages, we hope people will use Which? Mortgage Search to discover how much they could save. Providers are using their customers’ inertia to their advantage and getting away with charging longer-term customers high rates. It’s customers themselves who are in the best position to change this by finding the best deal for them and either approaching their lender for a better deal or taking their business elsewhere."
