5m homeowners ride out storm on record low SVR mortgages

When describing their current mortgage situation, one in four (25%) of homeowners state they are on their lender’s SVR and have no plans to change this.

This rose to over one in three (36%) of those aged 55 and over.

With best buy standard variable rates generally remaining lower than best buy fixed-rate mortgage deals in the current market place, it appears homeowners may not be considering a move to a fixed rate unless the base rate starts to rise.

The research also shows there are now only 11% of homeowners moving to another mortgage deal once their discounted, fixed or tracker rate deal comes to an end, compared to a slightly higher 12% earlier in the year.

David Elms, chief executive of Unbiased.co.uk said: "There are a large proportion of homeowners out there who think that sitting on their lender’s SVR is the best solution for them.

"We have gone through a period of falling base rate, making SVRs suddenly an attractive option compared to many fixed-rate deals.

"And with good mortgage deals hard to secure, many homeowners are finding it tough to keep track on which is the best mortgage for them and when is the best time to move onto a new deal.

"While in the past it could be financially crippling to remain on your lender’s standard variable rate after your mortgage deal had ended, now it is becoming a more popular option. It is however worth noting that fixed-rate deals will sharply increase should the base rate go up and borrowers may find competitive fixed-rate deals hard to come by."

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