The index, which Your Move believes is the first of its kind, showed that the first year saving available by switching from a standard SVR to the Moneyfacts best buy two-year fix would be £1,410.
Jon Round, remortgage analyst at Your Move, commented: “The benefits of remortgaging are high, not only in the first year after remortgaging but potentially over the full-term of the loan.
The borrower’s most popular choice remain two-year discount mortgages which offer first-year potential savings of over £1,700 on a £100,000 mortgage switch.
“However, remortgaging to these deals runs the risk that similar attractive offers will no longer be available after two years. Borrowers may well be wiser to lock in their savings with longer-term deals.”
Rob Clifford, managing director of franchise operation Mortgageforce, praised the monthly index. “I think it is a sound idea and applaud anything that highlights the fact that blind consumer loyalty is a waste of money.
This can only benefit the industry as a whole, especially as the public will understand the true value of impartial advice from independent brokers.”
Tony Corrigan, managing director of Classic Network Solutions, commented: “While this is a useful tool because it reminds consumers of the value of remortgages, the danger is that they will read this in the consumer press and say ‘I want one like that’ when it may not be appropriate for their needs.”
