Standard Variable Rate Mortgages can be bad for your wealth

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