. 1 Thousands of homeowners are paying £3,000 a year more than they need to Credit: Getty It comes after the Bank of England (BoE) lifted the base rate yet again to 5.25% earlier this month. The figure is used by high street banks and lenders to set the rates it offers customers on mortgages , as well as on other loans and savings. If you have a tracker mortgage that follows the base rate, your interest payments generally rise. But those on an SVR can also see rates go up if their lender decides to pass on the rise. Those on a fixed deal can land on a SVR when their fix ends. SVRs do tend to be higher than fixed rates and trackers mortgages. The payments for this kind of loan could change each month, going up or down depending on the rate. The bulk of homeowners are on fixed-rate products, although around 1.4million deals will be coming up for renewal in 2023, says the Office for National Statistics (ONS). Analysis by comparison site Compare the Market found that UK homeowners on an SVR could save £3,084 a year by switching to a fixed-rate deal. Instead of being automatically moved or staying on a lender's SVR once a fixed-term deal ends, borrowers may be able to save by remortgaging, the site said. According to the latest Moneyfacts' data, the current average five-year fixed mortgage rate is 6.37%. In comparison, the average SVR rate is around 7.85%. It means that homeowners are struggling not only with the rising cost of living but also with increased rates too. In a bid to help those struggling with higher monthly payments, the government brought in new measures recently . Compare the Market is now urging homeowners who are either coming to the end of their fixed rate or are alread){kind=link}
THOUSANDS of homeowners are paying £3,000 a year more than they need to, according to new research.
Experts found that mortgage holders could save up to £257 a month by switching from a standard variable rate (SVR).
It comes after the Bank of England (BoE) lifted the base rate yet again to 5.25% earlier this month.
The figure is used by high street banks and lenders to set the rates it offers customers on mortgages, as well as on other loans and savings.
If you have a tracker mortgage that follows the base rate, your interest payments generally rise.