£2.2bn
'lost' on costly mortgages
UK consumers are wasting £2.2bn a year because they are paying
over the odds for their mortgages, according to the Consumers' Association.
This is because one third of UK mortgages are charged at
the often expensive Standard Variable Rate (SVR).
Someone with
a £58,000 mortgage could save as much as £475 a year
by switching to a cheaper deal, the association has estimated. The
association is launching a campaign to help consumers save money.
People with
SVR mortgages are the most likely to gain by changing their mortgage.
They are probably paying a much higher rate than they could
get if they phoned The Mortgage Helpline to obtain a mortgage
comparison.
However, one
advantage SVR deals have is that they tend not to have redemption
penalties attached to them. Some redemption penalties can tie customers
into loans for several years.
The Mortgage Helpline can tell you exactly what redemption penalties
may apply, and we can also find mortgages that are portable,
so that penalties can be avoided altogether should you move
home.
Lenders often
reserve their best, low rates for new customers and, when the introductory
deal runs out, the customer is put onto a higher rate.
The Miles review
into long-term mortgage deals, published in December 2003, highlighted
this pattern of short-term introductory rates in the UK marketplace.
Customer
inertia
A combination
of inertia and complexity stops people changing their mortgage and
saving money.
The Mortgage
Helpline have created a mortgage search service which shows how
much someone could save on their monthly payments and the total
possible saving, including the costs involved in switching.
It`s
free to check with us how much you could save,
and we can usually accurately estimate your potential saving within
around 1 minute. The
Mortgage Helpline - Tel: 01253 404154
Disclaimer
Please
note that whilst The Mortgage Helpline U.K. makes regular efforts
to provide up to date information in this news section, we accept
no liability for the content or accuracy of any articles contained
herein, and the contents therefore are used entirely at the readers
own responsibility.The Mortgage Helpline do not provide financial
advice. All
links to other websites are provided on an information basis only,
and The Mortgage Helpline U.K. accept no liability for the service
or content that may be provided by other companies. Always seek
legal and/or professional advice. Please remember that your home
is at risk if you do not keep up repayments on a mortgage or other
loan secured on it
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