Most mortgage borrowers opt for a fixed rate mortgage due to the certainty of monthly repayments and also because fixed rates are very close to all time lows at the moment.
Unfortunately some people leave their borrowing on their lender’s Standard Variable Rate (SVR) sometimes just for a few months between fixed rate deals but others for a longer duration.
The tables below highlight just how much extra you end up paying by being on the SVR – it’s more than you probably realise.
If you leave your mortgage on standard variable rate, even for a single month you could be overpaying by more than £280 on a £150,000 mortgage – over the course of a year that’s £3396 of your hard earned cash down the drain.
| 2 Year Fixed Rate Mortgage | Rate and fee | Loan to Value | Monthly Repayment on £150,000 (25 year term) | Monthly saving v 4.90% average Standard Variable Rate | Saving over 12 months | Saving over 2 Year fix term (inc fee) |
|---|---|---|---|---|---|---|
| Lloyds Bank | 1.29% (£999 fee) | 70% | £585 | £283 | £3396 | £5793 |
| HSBC | 1.29% (£999 fee) | 75% | £585 | £283 | £3396 | £5793 |
| Yorkshire Building Society | 1,96% (£495 fee) | 90% | £633 | £235 | £2820 | £5145 |
| Compiled 18.11.2019 |
| 5 Year Fixed Rate Mortgage | Rate and fee | Loan to Value | Monthly Repayment on £150,000 (25 year term) | Monthly saving v 4.90% average Standard Variable Rate | Saving over 12 months | Saving over 5 Year fix term (inc fee) |
|---|---|---|---|---|---|---|
| Barclays | 1.58% (£999 fee) | 70% | £605 | £263 | £3156 | £14781 |
| HSBC | 1.64% (£999 fee) | 75% | £610 | £258 | £3096 | £14481 |
| Yorkshire Building Society | 2.31% (£495 fee) | 90% | £658 | £210 | £2520 | £12105 |
| Compiled 18.11.2019 |
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