Why switching to your lender’s SVR would be an expensive mistake.

For home-owners approaching the end of a fixed term it might be tempting to sit back, do nothing and switch on to your lender’s standard variable rate mortgage. However while this might be easy, it’s far from financially prudent. 

Mortgage rates remain at record lows. The best 2 year fixed rates sit below 1%, 5 year fixed rates below 2% and 10 year fixed rates below 3% - so how do lenders SVRs compare?

Not very well, as SVRs tend to be set anywhere from 4% up to a massive 6%. In addition, with an SVR you are also at risk of your lender increasing their rate at any time – there are cases of SVRs rising even though interest rates haven’t.

The question you need to ask yourself is - do you really want to sit back do nothing and end up paying far more for your home than you need to?

If you’re thinking you can do without the hassle of remortgaging, it’s simple - seek help and enlist the services of an independent ‘whole of market’ broker, on who can carry out the search and make a like-for-like comparison on your behalf.

By handing over your search to a professional you remove all the time, stress and hassle out of switching products.

Contact us at Deal Direct because in a very short space of time you could be on a far better deal with smaller repayments than you are at present.

We are specialist remortgage brokers and we know that we can source mortgage products with rates set far lower than SVRs.

Don’t switch to a more expensive SVR leaving you vulnerable should interest rates begin to rise post Brexit. Remortgage and lock into a cheaper rate while you can.

For impartial, no-obligation, free advice and a full review of all deals available at your equity level, call an adviser at Deal Direct.

Speak to us today and let us switch you to a better deal than your lender’s SVR. 

Call Deal Direct and speak to an adviser on 0800 048 8828.