Do you know when your current mortgage deal runs out? Four in ten people in the UK don’t, and it’s costing them dearly.
Our story for uSwitch this week revealed how homeowners are being caught out by higher mortgage repayments when they move onto their lender’s Standard Variable Rate (SVR). Homeowners who move onto the SVR spend on average 21 months on this rate and pay on average £2,445 in additional repayments.
uSwitch is calling for lenders to do more to alert homeowners that their introductory period is coming to an end, as Tashema Jackson, money expert at uSwitch.com, explains: “Lenders rely on borrower apathy when it comes to mortgages – enticing them in with a competitive introductory rate and counting on them to stay put once the deal is over.
“Too many borrowers are in the dark about when their current mortgage deal ends. There is much more lenders can do to help their customers take control of their mortgage. At the very least, borrowers should be able to bank on their lenders notifying them ahead of time when their introductory period ends.
“Homeowners can also make the most of great mortgage deals on the market by planning ahead. If they know when their initial deal is due to expire, they can often avoid higher repayments by shopping around and comparing fixed or discounted rate products.”