The average SVR is 7.25- per cent, according to the financial data provider Moneyfacts, with some lenders charging more than that.
1.8 million people on fixed-rate mortgage deals urged to act
1.8m fixed-rate mortgage deals are due to end in 2026, with borrowers urged not to sit on the standard variable rate (or SVR). The average SVR is 7.25 per cent, according to the financial data provider Moneyfacts, with some lenders charging more than that.
Someone with a £250,000 mortgage could save more than £500 a month with a deal at 3.65 per cent rather than paying an SVR of 7.25 per cent, it has emerged.
David Hollingworth of the broker L&C Mortgages said: “Currently, fixed rates are still typically a bit lower than the pay rate on a tracker.” And he says we may see more demand for trackers if the messaging implies “more rate cuts to come”.
READ MORE Smart motorway warning after grandmother, 68, dies in England
There are now more than 7,100 different mortgage products on sale in the UK – the highest figure since 2007, says Moneyfacts. So it is worth comparing the deals your lender offers with its rivals, according to mortgage experts.
“Trackers can give more flexibility, plus the promise of further rate cuts,” he said. Unbiased UK, meanwhile, says borrowers should act early.
“Ideally, you should start around six months before your fixed-rate period ends,” the site said in a message to borrowers.
It added: “Acting early can also help you avoid extra payments. When you actually remortgage may be influenced by .
“Most lenders will allow you to agree on a rate with them up to six months before you start paying and some may allow you to switch to a lower rate before your deal expires, but it’s worth checking beforehand.
“Bear in mind that your fixed rate period may include early repayment charges, which may apply beyond the .
“These charges can sometimes run into thousands of pounds sometimes, so you may be better off staying on the SVR for a short time rather than remortgaging immediately.”
