Borrowers could save over £5,000 on their mortgage payments by switching to a new fixed rate two-year offer, according to new analysis by Experian and L&C Mortgages.
The findings suggested that a homeowner with a £150,000 20-year mortgage loan on a lender’s standard variable rate (SVR) of 4.49% would have a monthly repayment of £948.16.
However, the same mortgage on a two-year fixed rate remortgage deal of 0.99% would have a monthly repayment of £689.17, representing a saving of £6,215.76, or £258.99 per month.
Taking the arrangement fee of £999 into account, this would still leave a homeowner better off by £5,216.76 over the two-year period.
Data from Experian also suggested that almost 6% of homeowners could be coming to the end of their fixed term deal over the next three months so will need to remortgage.
Experian head of consumer affairs, James Jones, commented: “There can be substantial savings to be had by switching to a new fixed rate mortgage deal, so we urge anyone with a fix ending soon to check out their options. Taking no action will mean you lapse onto your lender’s standard rate, which will usually lead to a hike in your monthly payments.
“You can get help exploring your options by seeking advice from a free, independent mortgage broker. It’s also worth taking a moment to review your credit score, giving you the opportunity to make improvements where appropriate.”
L&C Mortgages associate director, communications, David Hollingworth, added: “With living costs on the rise it’s important consumers are aware they can shop around and find a better deal, as they could be saving hundreds of pounds a month by switching to a fixed rate mortgage.
“There remain competitive deals on the market, but if expectation of an interest rate rise persists then the deals currently available might not be around for too much longer.”
Latest News
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories