"Today’s borrowers today are missing out on some great opportunities to save, mainly due to complacency."
Homeowners on a typical two-year fixed rate deal could save up to £171.85 a month, or £2,062.20 over a year, compared to borrowers who remain on a lender’s SVR.
With 1.9m homeowners currently on their lender's variable rate (1 in 6 mortgage borrowers), homeowners could save a combined £3.9bn a year by switching products.
Jeremy Duncombe, Director of Legal & General Mortgage Club, said: “Today’s borrowers today are missing out on some great opportunities to save, mainly due to complacency. Simply switching deals to a more competitive rate could make a significant difference to their everyday life, particularly at a time when wage growth is relatively low.
“Now is the perfect time to review current deals, especially for those on an SVR or coming to the end of a mortgage term. Homeowners should contact an adviser to explore the idea of swapping to a different mortgage deal, which could give them the equivalent of a hefty pay rise. Those who act now may see significant benefits in the years to come, as they’ll able to take advantage of current interest rates while they are still at an all-time low.”
