Remortgaging could save borrowers over £6,500 a year: L&G

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Legal & General Mortgage Club has conducted research showing that borrowers currently on an SVR mortgage could save thousands a year by remortgaging to a fixed rate.

The figures state the average SVR rate in April was 4.14 per cent, and that moving an outstanding mortgage of £150,000 to the average two- or three-year fixed product (including a £999 fee) would save £4,508 and £6,530, respectively.

An interest rate rise in August from 0.50 per cent to 0.75 per cent, which many market observers believe is increasingly likely, could eventually cost SVR mortgage holders more, although the research did not take this into account.

Legal & General Mortgage Club director Kevin Roberts says: “With rates still close to their historic lows and unlikely to improve further, now is a great time for borrowers to secure a fixed rate deal on their mortgage… these near all-time low rates will not last forever, so any borrowers who are looking to secure a good deal should speak with a mortgage broker now.”

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