Legal & General Mortgage Club has conducted research
showing that borrowers currently on an SVR mortgage could save thousands
a year by remortgaging to a fixed rate.
The figures state the average SVR rate in April was
4.14 per cent, and that moving an outstanding mortgage of £150,000 to
the average two- or three-year fixed product (including a £999 fee)
would save £4,508 and £6,530, respectively.
An interest rate rise in August from 0.50 per cent to
0.75 per cent, which many market observers believe is increasingly
likely, could eventually cost SVR mortgage holders more, although the
research did not take this into account. Bank of England Base Rate was
increased to 0.75% on 02/08/2018 IMP
Legal & General Mortgage Club director Kevin Roberts
says: “With rates still close to their historic lows and unlikely to
improve further, now is a great time for borrowers to secure a fixed
rate deal on their mortgage… these near all-time low rates will not last
forever, so any borrowers who are looking to secure a good deal should
speak with a mortgage broker now.”
Gary Adams Legal & General
Many expatriates now have residential mortgages,
working abroad with the family living back in the UK.
Products available to them, particularly fixed rate
are limited and priced at a higher rate. However, this shouldn’t deter
them from investigating whether cheaper mortgages are available.