Switch and Save?

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With the cost of living on the rise and day to day expenses like energy prices soaring, it is hugely concerning to see that people are paying so much more than they should be.  On top of this, our research shows that while homeowners believe they are paying too much for their mortgage they still aren’t taking action to cut their monthly payments, Jeremy Duncombe L&G.

40% of mortgage borrowers are on their lenders standard variable rate (SVR).

The current average SVR is 4.37%.
On a loan size of £350,000 this would equate to monthly capital repayments of £2,210.

The current average two-year fixed rate for a 75% loan to value (LTV) mortgage is 1.42%. 
On a loan size of £350,000 this would equate to monthly payments of £1,386. 

A monthly saving of £824.

Whilst most would argue that interest rates are unlikely to change this year, this can certainly change along with the following economic factors:

Support for rate rise is appearing
The UK economy has held up since the EU referendum
A new UK election
Unemployment is falling
UK economic growth forecasts are being revised upwards 
The current forecast is for interest rates to go up to 0.5% by 2018.
The Bank of England (BoE) base rate is predicted to be around 1.25% in 2020.

Although it is likely that the BoE will take a cautionary approach; we would encourage borrowers to take the same cautionary approach in mitigating economic turbulence. 

1)Contact your lender to find out your existing rate and outstanding balance
2) Contact us for a whole of market comparison

Don’t leave it too late to plan!

Information is based on our current understanding of taxation, legislation and regulations.
Any levels and bases of relief from taxation are subject to change.
SKF Trading Ltd, trading as SK Financial

2016/17 ISA AllowanceMind the trap

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