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Now is the time for you to save your clients thousands – Philips

by: John Philips, operations director of Just Mortgages and Spicerhaart
  • 31/08/2018
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Now is the time for you to save your clients thousands – Philips
Borrowers who are currently on an SVR mortgage could save thousands by remortgaging onto a fixed rate deal, so says the latest research from Legal and General Mortgage Club.

 

It found that homeowners who remortgage from a lender’s standard variable rate (SVR) to a fixed product could save around £2,000 a year.

They calculated the cost of moving an outstanding mortgage of £150,000 to a two-year fixed rate deal, including paying a £999 fee, could save the borrower more than £4,500 over two years.

Furthermore, when moving the £150,000 mortgage to a fixed rate deal, L&G calculated the savings over a three-year period to be upwards of £6,000; certainly not to be sniffed at.

In fact, the savings might even be higher still if you are able to find your client a deal with no fees. And that shouldn’t be too difficult, because we are now in a lending environment where 40% of mortgage products now have no fees.

 

Rates still falling

According to Moneyfacts, last year the number of products with no fees was 1,709, now it is 2,007 – an increase of 17%.

And many of these no-fee deals are offering great fixed rate options including many under 2%.

In fact, analysis by Mortgage Brain reveals that mortgage rates have fallen for the second year in a row with some fixed rate deals falling greatly in the past four months.

It found that a 90% loan to value two-year fixed rate mortgage has become 8% cheaper since April.

While rates are still close to historic lows and the only likely movement is upwards, now is a great time to start getting in contact with all your SVR clients and talk to them about the money they could save now and in the future by remortgaging.

 

 

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