Should you revert to a standard variable mortgage rate?
Surprisingly standard variable mortgages remain in demand inspite of the fact they are currently more expensive than average fixed mortgage rates.
Fixed rate mortgages have fallen in cost and at present there are some really cheap mortgages on offer.
Abbey for example have a 2 year fixed rate 7 day special currently available at just 1.94%. When deals such as these are available it makes no sense to sit on a more expensive SVR.
It may be easy to revert to a SVR but is it sensible?
SVRs are no longer a cheap product, but still many home-owners revert to their lender’s rate at the end of their mortgage term. With the majority of SVRs available at over 4%, there are now more competitive deals on offer.
So with SVRs rising but other rates falling, why are home-owners still reverting to their lender’s rate?
In most cases it is because it is easy. Reverting to a default rate takes far less effort than researching the market for a new offer. While this is easy, it is not the way to reduce monthly costs.
If you want to reduce your costs it is advisable to remortgage to a lower rate offer, when there are cheap rates available it makes sense to switch to save money.
At Deal Direct we will review the mortgage market on your behalf, to help you to switch to a cheaper deal than your lender’s variable mortgage rate. We take the hassle out of looking for low rate and switching deals.
Why pay more than you have to when an adviser at Deal Direct can help you switch to a cheaper deal?
Call an adviser today on 0800 048 8828 for a quote.
