Moving mortgage could save money
October 4, 2007 by admin
Filed under News, News-Mortgages
Mortgage-payers are often forking out over the odds for their home loans and should consider re-mortgaging, according to one industry publication.
Moneywise magazine says a general apathy about changing providers, leaves people, in some cases, paying hundreds of pounds more than need be the case.
Rachel Williams, editor of Moneywise, said: “If you are paying your lender’s standard variable rate, you could be paying more than two per cent more than you need to.”
There are fears that, in the light of the recent Northern Rock debacle, homeowners are wary of changing providers, but Ms Williams said that savings could still be had even if they keep the same lender and switch product instead.
“The easiest way is remortgaging with your existing lender, because then it’s just a case of signing a few forms and being transferred,” she said.
Various factors would determine the viability of switching, such as arrangement fees, early redemption charges and tie-in periods, but even so significant savings can be had.
On an interest only £100,000 mortgage, at a rate of 7.75 per cent (SVR) comma you could save £166 per month if you switched to a scheme on 5.75per cent.
Various products are available including standard variable, fixed, and tracker – which typically tracks the Bank of England base rate.
