15% ‘salary bonus’ for savvy home owners who avoid mortgage SVR
Millions of home owners across the UK could be sitting on a cash bonus equivalent to a 15% salary increase.
To get it, they won’t need to work longer hours, work weekends, or even receive a promotion. Instead, they can simply look into their remortgage options online. Who are these home owners? They’re mortgage holders who’ve lapsed onto their lender’s high-interest Standard Variable Rate (SVR) following the end of their introductory deal (often a fixed, tracker, or discounted rate deal).
And there are currently two million of them.
How much could be saved switching from an SVR?
Previous research from Trussle shows that lapsing onto an SVR can cost borrowers thousands of pounds in additional interest per year. Now our latest research shows that switching from an SVR to a market-leading deal could save an average of £4,500 a year.
Compared to the average UK salary of £29,588, this saving is comparable to receiving a 15% salary bonus. Research from Trussle shows that the amount will vary depending on where you live, due to the differing average house price and salary in that region.
Even in areas such as Northern Ireland and the North East (where houses tend to cost less), borrowers could land an effective salary bonus of 6.9% and 8.5% respectively.
In total, two million borrowers will collectively lose out on a £9bn pay-day this year unless they switch.