With over £100 billion worth of fixed rate mortgages set to end in 2007, mform.co.uk indicated that borrowers could expect to experience an average rise of £1,021extra a year if they moved on to the lenders SVR.
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Francis Ghiloni, marketing and business development director at mform.co.uk, commented: “For those borrowers who took a fixed rate deal in 2005 which is coming to an end, they could see their repayments increase by £1,021 if they move on to their lender’s SVR.”
mform.co.uk also urged borrowers coming to the end of their fixed rate deals to act quickly before further Bank of England Base Rate rises. Ghiloni added: “Some lenders have pulled some or all of their fixed rate ranges or placed them on withdrawal watch. Customers whose deals are running out should research the market now because there will be fewer offers available when their deal expires.”
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Phil Perry, director at ARK Financial Planning, said: “It doesn’t surprise me as clients have more ‘views’ these days and many will move their mortgage away from the initial lender to get a better deal. The majority of lenders are very good at helping borrowers get a better deal when the fixed rate comes to an end.”
However, Perry added: “There are still a lot of mortgage borrowers who will sit on a lender’s SVR as a lot of people will not seek advice as they’re afraid of not being able to afford or understand it, while other people don’t think they need to change the lender or deal they are signed up with.”
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