"There are a huge number of borrowers who could benefit from switching products now to take advantage of some of the cheapest fixed rate mortgage rates"
TMA mortgage club is encouraging advisers to contact with clients who are sitting on their lender’s SVR to ensure they are properly informed of their remortgage options, as well as whether their lender can offer a product switch.
This, TMA says, is where intermediaries can "add huge value", including revisiting their customers’ financial planning circumstances and needs for the future.
Figures published by TMA intermediary partner, Virgin Money, show that around three million residential mortgages in the UK are now on an SVR scheme. This equates to almost a third of the market, covering total lending of some £225bn.
Research by Citizens Advice shows that customers who have rolled onto their lender’s SVR at the end of a two year fixed term mortgage deal typically pay an additional £439 a year. Potential annual savings for switching, however, could see consumers save over £4,500, based on a £250,000 mortgage loan.
Lisa Martin, Group Development Director at TMA, commented: “With an interest rate rise firmly on the horizon, there are a huge number of borrowers who could benefit from switching products now to take advantage of some of the cheapest fixed rate mortgage rates they may see for a while.
"TMA recognises the vital role that advisers play in educating clients and dispelling any myths around remortgaging. We will continue to support our members as they make their clients aware of their options whilst sitting on their lender’s SVR.”