The average SVR rate among lenders is 4.82%, whereas a 2-year fixed rate remortgage (at 90% LTV) can be over 2% lower.
There are currently 1.9 million borrowers on an SVR who are paying a rate above 3%, and would therefore benefit by switching from an SVR.
These borrowers could save as much as £329 a month - or £3,948 annually - by remortgaging, or £15,000 over a 5-year fixed deal. As a whole, homeowners could be paying almost £30bn more than they need.
Tracie Pearce, head of mortgages at HSBC, said: “Almost two million borrowers have a SVR mortgage rate at over 3% and could therefore benefit from moving off their SVR mortgage to a competitive fixed term deal.
“A quick call to their lender to find out if they are on a SVR mortgage could not only be the catalyst for families to save a small fortune by switching to a more competitive mortgage, it would also provide certainty for family budgets.”
