Research by the mortgage website showed the difference between the rates of Summer 2003 and today’s SVRs is ‘a staggering’ 3 per cent and those who arranged low-rate deals have felt the pinch as their deals come to an end. It said as much as £369 each could have been squandered after just three months, as a result of the borrower failing to review their situation.
Charcolonline said the current difference between an SVR deal and a ‘market-leading’ remortgage product is 2 per cent and it is urging homeowners to see how much better off they could be by switching to a more competitive deal.
Drew Wotherspoon, PR manager at Charcolonline, said it is imperative that homeowners who have not remortgaged from these deals do so immediately. He said: “I am sure the lenders will have benefited from Summer apathy by borrowers who have had rearranging their mortgage way down on their list of priorities. Three months is not a long period yet, in financial terms, it simply doesn’t make sense for them to remain on an uncompetitive rate a day longer.”
“A mortgage is most people’s biggest financial commitment so there’s no room for apathy when it comes to ensuring you’re getting the best possible value for money,” Wotherspoon added.
Charcolonline’s data follows research by Abbey that revealed, of the estimated 800,000 people coming to the end of short-term deal, 35 per cent (280,000 people) do not intend to remortgage at all.
Abbey’s director of mortgages Gary Hockey-Morley said: “It is really important that borrowers find a deal that suits their individual needs; remortgaging is easy to do and could result in a significant monthly saving.”
