Standard Variable Rate  

Millions add years to mortgage term by sitting on SVR

Millions add years to mortgage term by sitting on SVR

Research from L&C Mortgages has revealed nearly a third of mortgage holders are sat on standard variable rates as Brexit looms.

Almost half (46 per cent) of those who own their house outright said their last mortgage was on an SVR, which David Holingworh, associate director of communications at L&C Mortgages, said suggested borrowers could pay off their mortgage even earlier if they took time to find a better deal.

Mr Hollingworth said: "It is encouraging to see a large group of borrowers actively managing their mortgage and sitting on fixed rate deals.

"While there may be specific circumstances where sitting on an SVR makes sense, for the most part this group of people could be getting a head start for later life by shopping around and saving themselves a small fortune.

"Given people are worried about how they might afford re-payments as they get older, proactively taking action now could be the difference between paying off your mortgage before you retire or not."