TMA mortgage club is urging brokers to contact borrowers on lenders’ standard variable rates to make sure they are getting the best deal.
The club says brokers can “add huge value” when discussing options and needs and helping financial plans.
A TMA statement says: “Worryingly, some borrowers simply believe they cannot move elsewhere, as they have been on a set deal for so long. It is vital that clients are properly informed of their remortgage options, as well as whether their lender can offer a product switch.”
Research by Citizens Advice shows that customers on lender SVRs at the end of a two-year fixed mortgage typically pay an extra £439 a year.
TMA group development director Lisa Martin says: “With an interest rate rise firmly on the horizon, there are a huge number of borrowers who could benefit from switching products now to take advantage of some of the cheapest fixed rate mortgage rates they may see for a while.
“TMA recognises the vital role that advisers play in educating clients and dispelling any myths around remortgaging. We will continue to support our members as they make their clients aware of their options whilst sitting on their lender’s SVR.”