Standard Variable Rate Mortgages – Stick or Swap?

Monday, December 17th, 2018

Here at Caboodle Finance, we believe that as many UK mortgage borrowers are now paying interest at their lenders’ standard variable rate, the decision of whether to stick with that lender or switch to another is becoming ever more important.

SVR at it’s highest level since 2009.

Recent research by Moneyfacts has indicated that following the base rate rise earlier this year, given that the average mortgage standard variable rate product is now at its highest level since 2009, some mortgage borrowers have effectively lost out when compared to savers. *

Time to re-evaluate your mortgage options?

Moneyfacts reported that in the last 12 months the average standard variable mortgage rate has jumped from 4.75% to 4.90%, which alone may be the stimulus some borrowers need to revisit their options in terms of an alternative mortgage product. 

Thereafter, some borrowers may decide to go it alone to try and find an alternative product themselves, whilst others opt to employ the services of a specialist mortgage broker who can then help them locate the most appropriate products on the market.

Be prepared to pay money in order to save money.

Although these specialist mortgage brokers may charge a fee for their mortgage advice, if the broker is able to find a more competitive deal and save the borrower money compared to the deal the borrower may have ended up with had they tried to do it themselves, that fee can represent fantastic value when compared to the savings in costs, interest or even both.

Not only will the mortgage broker be able to source a suitable product from a comprehensive range of mortgage providers, with their extensive knowledge of the mortgage market they will also be able to make the important checks that the borrower meets the criteria of the lender in question and can, therefore, access the product on offer prior to any application being made.

Your specialist mortgage broker in Sutton Coldfield.

The team here at Caboodle Finance of Sutton Coldfield, Birmingham do their utmost to ensure that clients get access to the very best mortgage that matches their individual circumstances. For more information call 0121 308 9114 or alternatively just click HERE to contact us and one of our specialist mortgage broking experts will be in touch to help.

*Source – Moneyfacts (November 2018)