Are you switching mortgage deals in time ?
How are you for keeping on top of your finances?
Do you know when your fixed rate mortgage deal is up?
I have no clue and I am sure many of you don’t either. According to the research findings there are many of us out there.
It is well worth having a quick call/look at your documents though.
You could be saving yourself a small fortune.
For just a tiny amount of effort too.
Let me explain…..
Dynamo, a new online mortgage adviser, commissioned some research on the impact of not switching your mortgage deal in time.
Are you ready for these pretty shocking results…
The ‘Procrastination Penalty’
On average in 2017 it took a third of UK mortgage holders 42 days after their mortgage deal expired to find a new deal, costing them £371 (or nearly £62 a week)*
- 33% of mortgage holders* ended up on their lender’s Standard Variable Rate (SVR) in 2017
- These mortgage holders spent an average of 42 days or six weeks on their lender’s SVR
- They paid an average SVR penalty of £371
- This is the equivalent of £61.83 per week for the six weeks they spent on their lender’s SVR – more than the average weekly shop in the UK (£53.20)
What an absolute and complete waste of money.
Were you one of the 33%.
How to avoid this…
To help you avoid the costly impact of not switching mortgages on time, Dynamo has launched a Mortgage Alarm Clock which will provide you with automatic reminders of deadlines to avoid moving on to your lender’s Standard Variable Rate.
Now THAT is handy!
What a simple but brilliant idea.
Andrew Hagger, Founder and Director of Moneycomms.com, commented on the research:
“With SVR rates pushing 6% in extreme cases – some people could be paying triple the interest rate they would on a fixed rate – hopefully, initiatives such as the Dynamo Mortgage Alarm Clock alert facility will prevent borrowers being subject to such punitive rates. With further interest rate hikes a real possibility, bagging a new mortgage rate sooner rather than later is even more important.”
‘Using the services of an online mortgage broker like Dynamo gives borrowers the flexibility to organise switching to a new fixed-rate deal at a time that suits them – not just when the broker’s high street office is open. This convenience factor is a big plus point and could save people hundreds of pounds in unnecessary SVR interest charges.”
For more information about Dynamo’s Mortgage Alarm Clock, please visit www.dynamo.co.uk/mortgagealarmclock
Don’t procrastinate! Make sure you are switching mortgage deals in time. For just a minutes effort you could save yourself a lot of money.
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