Brace yourselves as we delve into the latest mortgage mayhem facing UK homeowners. Over a million mortgage holders who locked in two-year fixed rates back in 2024 are now staring down the barrel of a £283 monthly increase as they roll onto their lender’s Standard Variable Rate (SVR). That’s a hefty £3,000 more per year!
But fear not! There’s a silver lining for those willing to shop around. A savvy switch from the SVR to a new two-year fixed rate could save homeowners up to £286 a month, or a cool £3,432 annually. With the average SVR now at 7.13% and the average two-year fix at 4.79%, the savings are substantial.
This financial rollercoaster affects a diverse group: over 122,000 first-time buyers, 111,000 home movers, and a whopping 690,000 homeowners who previously remortgaged. The message from Sajni Shah, money expert at Compare the Market, is clear: don’t just roll onto the SVR. Instead, compare mortgage deals to find one that fits your financial needs.
So, if you’re one of the million-plus homeowners facing this financial hurdle, take a deep breath and start exploring your options. A little research could save you a lot of cash. Happy mortgage hunting!
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