Stuck on a high standard variable rate deal and need to remortgage?
The bank rate was lowered to 0.25% last week, and for many SVR mortgage-holders the hope is that lenders will pass this rate cut on to them.
However, as only 3 lenders have stepped up to do this so far (Virgin, Santander and Barclays), the feeling is many mortgage-holders are going to be left disappointed.
Standard variable rates are set around 4 times higher than the best fixed rate deals currently on offer, so the question is why are borrowers failing to switch?
For some reason there are those mortgage holders who fail to remortgage and move to a competitive offer at the end of their fixed term. Lenders profit greatly from those who fail to act and switch, if you are sitting on an SVR what is your reason for doing so?
If you don’t know how to remortgage, if you are daunted by the prospect or worried about where to start or how to go about it, an adviser at Deal Direct can help.
Remortgaging makes sense, and searching the market for the best deal possible makes home-ownership more affordable.
It is likely that the drop in bank rate won’t lead to all lenders cutting their rate, and so don’t wait to switch.
Call us on 0800 048 8828,
to find out how much we can save you on your home.
