Save on your mortgage get off standard variable rate

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Mortgage borrowers on standard variable rate could be overpaying by nearly £300 a month.
Our analysis shows that borrowers still on lender’s standard variable rates will be paying up to £290 per month more in interest than necessary (based on a £100,000 mortgage).

How much are you wasting every month?

Check our table to find your mortgage lender to see how much cash you are throwing away.

LENDER SVR Wasted money
Accord 5.79% £370 per month
Allied Irish Bank 4.20% £238 per month
Bank of Ireland 4.49% £263 per month
Barclays 3.75% £200 per month
Beverley 4.75% £283 per month
Buckinghamshire BS 5.24% £324 per month
Cambridge BS 4.99% £303 per month
Chorley BS 5.49% £345 per month
Clydesdale Bank 4.95% £300 per month
Co-Operative Bank 4.74% £283 per month
Coventry BS 4.49% £263 per month
Cumberland 4.49% £262 per month
Darlington 5.95% £383 per month
Dudley BS 4.99% £303 per month
Earl Shilton 5.19% £320 per month
Ecology BS 4.90% £296 per month
Family BS 4.79% £287 per month
First Direct 3.69% £195 per month
Furness BS 5.44% £341 per month
Godiva Mortgages 4.74% £283 per month
Halifax 3.99% £220 per month
Hanley Economic 5.19% £320 per month
Harpenden BS 4.19% £237 per month
Hinckley & Rugby BS 5.64% £358 per month
Holmesdale BS 4.99% £303 per month
HSBC 3.94% £216 per month
Investec Private Bank 3.99% £220 per month
Ipswich BS 3.99% £220 per month
Leeds BS 5.69% £362 per month
Leek United 5.19% £320 per month
Lloyds TSB Scotland 3.99% £220 per month
Loughborough BS 4.99% £303 per month
Manchester BS 5.49% £345 per month
Mansfield 5.59% £353 per month
Market Harborough BS 5.49% £345 per month
Marsden 5.95% £383 per month
Melton Mowbray 4.99% £303 per month
Metro Bank 4.00% £221 per month
Monmouthshire BS 4.99% £303 per month
National Counties BS 4.69% £278 per month
Nationwide BS 3.74% £200 per month
Nat West 4.00% £221 per month
Newbury BS 4.45% £258 per month
Newcastle BS 5.99% £387 per month
Norwich and Peterborough 4.99% £303 per month
Nottingham BS 5.74% £366 per month
Paragon Mortgages 5.10% £313 per month
Penrith BS 4.15% £233 per month
Principality BS 4.99% £303 per month
Progressive BS 4.75% £283 per month
RBS 4.00% £221 per month
Saffron BS 5.39% £337 per month
Santander 4.49% £262 per month
Scottish Widows Bank 3.99% £220 per month
Skipton BS 4.95% £300 per month
Stafford Railway 3.20% £154 per month
Standard Life Bank 4.99% £303 per month
Teachers BS 4.99% £303 per month
Tesco Bank 4.24% £241 per month
The Co-Operative Bank 4.74% £283 per month
Tipton & Coseley 4.99% £303 per month
Vernon 4.95% £300 per month
Virgin Money 4.54% £260 per month
West Bromwich BS 3.99% £220 per month
Yorkshire Bank 4.95% £300 per month
Yorkshire BS 4.99% £303 per month
 *based on £100,000 mortgage

Cut your mortgage payments now

What is a standard variable rate?

Standard variable rate, sometimes called a ‘revert rate’ or ‘reversion rate’, is the interest rate that your mortgage lender moves your mortgage to when your introductory offer ends.

For example, a borrower who took a a two-year fixed-rate with Halifax in 2014 will see their mortgage revert to a interest rate of 3.99% this year if they do not take alternate action.

The lender will keep the borrower on the standard variable rates unless action is taken.

Does my lender offer alternative rates?

Your mortgage lender in most cases will contact you before your current special rate ends to offer you alternatives to the standard variable rate.

However, since they will only be offering you from their limited range of rates you cannot be sure that you can get the best deal available on the market from your existing lender.

If is recommended, therefore, that you consider the whole of the market when reviewing your mortgage.

What if I don’t take up the offer of a new rate from our existing lender?

If you do not arrange a new rate with your existing lender you will drop onto standard variable rate. We are all busy people, and often, even with the best intentions, we may forget to make the necessary arrangements to keep our mortgage rate competitive.

Your mortgage lender will generally contact you when your current rate ends to offer alternatives, but the lender is unlikely to contact you again once you have gone on the standard variable rate.

This does not mean that you have missed your chance to move to a more favourable rate as there are no early repayment charges on standard variable rates, this means you can move your mortgage and save money at any time.

Am I on a standard variable rate?

Many borrowers are on standard variable rates. Mortgage industry figures show that every month there is up to £14 Billion of mortgage lending that is coming out of fixed or tracker rates for mortgage borrowers across the country.

If you have been with your mortgage lender for a number of years and do not remember taking any action to move to a new rate you are probably on a standard variable rate.

Why is being on a standard variable rate a problem?

In short, cost.

Mortgage lenders like borrowers to be on standard variable rates as it is very profitable for them and lives in control of the rate.

Our analysis of 63 lenders in today’s market show that a borrower with mortgage of just £100,000 could save up to £370 per month simply by switching from their lenders standard variable rate to one of the more competitive mortgage rates available in the market.

Even borrowers with high loan to value can make a significant saving by reviewing their mortgage.

What are the costs involved?

You can switch to a new rate from a standard variable rate at no cost in a number of ways. Your existing lender may offer a range of rates you can switch to without cost.

Other lenders will be keen for your business and will offer ‘fees free’ remortgaging with rates more favourable than your lender can offer in most cases.

Can I raise extra money?

Yes, when you remortgage onto a new rate with a new lender can raise extra cash to pay off debt, build an extension or improve your home, or put money aside for business reasons, school fees, etc.

Your existing lender may also offer you extra cash through what is known as a further advance.

Is my age a problem?

Mortgage lenders are starting to wise up to the market for the more mature borrower. Mortgage applications can now be considered where terms extend into retirement from a number of competitive high Street lenders.

Where there are two applicants, and the younger applicants has income sufficient to support the mortgage the age of the old applicant can be ignored.

Can you help with high rate stamp duty?

The new higher rate stamp duty rules means that some parents who have gone on to property deeds to support the mortgage of their children now find themselves with an extra 3% stamp duty land tax Bill when they wish to buy another property.

We have access to mortgage lenders that will allow you to remortgage on a joint borrower/sole proprietor basis meaning you can both be on the mortgage but only one party need be on the property deeds.

What about remortgaging when I have only just acquired the property?

This can be a problem, as many lenders are nervous about refunding a recently acquired property due to money-laundering rules. We have access to lenders that will allow you to remortgage immediately after purchase without a problem.

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