Read our series of Blogs on whether to Stay with your existing lender or Switch to a new lender

Stay or to Switch (2of4) Disadvantages of staying on Standard Variable Rate (SVR)

Category: Blog

Recent consumer research*, found that 41% of respondents were considering not re-mortgaging, and instead staying with their existing lender and accepting the switch they had been offered to their current lenders Standard Variable Rate (SVR).

So why are people opting to stay?

The research uncovered the following reasons:

  • Having debt
  • Being financially impacted by Covid-19
  • Worried about lenders scrutinising their finances
  • Economic uncertainty

But did you know that switching to an Standard Variable Rate could mean facing up to a £2,500 annual increase in repayments?**

As an adviser I can help you find the right mortgage deal for your circumstances.

There are plenty of great fixed rate deals available, for varying terms, and specialist lenders who can help borrowers with more complex needs. 

Together, we can find the right deal for you.

* Research conducted by Legal & General Mortgage Club (Legal & General Group Plc)

** Example based on a borrower taking out a 90% mortgage at Which?’s average 2019 fixed rate (Best mortgage rates at 95% LTV revealed – Which? News) on the UK’s average house price in May 2019 of £230,049 and a current average market SVR of 4.51%

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage

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