TMA Mortgage Club has urged mortgage advisers to get in touch with customers who are sitting on their lender’s standard variable rate (SVR) in order to ensure their clients are getting the best possible terms on their mortgage.
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, said: “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.”