Nearly a third of mortgage borrowers on SVR
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The number of borrowers on their lenders’ SVR is now 2.3m, representing 28% of the mortgage market, according to Yorkshire Building Society.
But the average lenders’ SVRs is currently 5.04% and are now above current best buy deals, say researchers.
The number of SVR mortgage customers with less than 85% LTV has soared to 1.7 million in past 12 months.
And, although the number has risen significantly since last year, for every 1% rise in UK house prices approximately 16,000 SVR mortgage payers qualify for a best buy deal.
A total of 440,000 high LTV mortgage payers are unable to switch to best buy deals due to having insufficient equity in their homes.
Tom Girling, mortgage product manager at Yorkshire Building Society, says: “A record number of mortgage customers are currently stuck in ‘mortgage limbo’ on SVR rates that are generally far higher than best buy deals.
“Our analysis shows that the vast majority could make significant savings by switching to a better rate mortgage and with 80% having at least 15% equity in their home, they are free to switch lender right now.”
But Yorkshire says those with LTVs of less than 85% - 75% of the marlket - are free to move and represent 21% of the market and over £116 billion mortgage assets.
Yet 19% of SVR payers and 5% of the total market can not move.
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