24th October 2017

With interest rates at their lowest levels for some years, borrowers are often content to stick with their existing mortgage deal. However, new research from Citizens Advice reveals that being a long-standing loyal customer of your mortgage provider might be costing you money. What’s more, they calculated that 1.2m mortgage holders could be better off by shopping around for a new deal.

Their conclusions are based on homeowners who remain on their lender’s standard variable rate after their two-year fixed term mortgage deal has come to an end. The penalty for staying with their existing lender can be around £439 a year. For first-time buyers, who are likely to have a bigger mortgage outstanding payable over a longer period, the figure based on the same scenario is even higher at £1,359 a year.

As the monthly mortgage repayment is often a family’s major outgoing, it’s a good idea to review your mortgage from time to time. If you’d like some advice please contact us.

As a mortgage is secured against your home, it could be repossessed if you do not keep up mortgage repayments.