Almost a third (31%) of homeowners have let their mortgage slip into a higher rate for at least 1 month after their fixed-rate deal has ended, a mistake that can add £3,000 in unnecessary mortgage repayments
The total amount of time during which people had let their mortgage revert to a higher rate was an average of 10 months over the course of their mortgage, according to a survey by personal finance comparison site finder.com
Someone paying off the cost of the UK’s average house, worth £281,913, on a competitive fixed 3-year rate* of 5.5% would pay £1,361 per month during those 3 years.
But if they didn’t remortgage immediately at the end of the initial fixed term, the interest rate would revert to the lender’s standard variable rate, which is typically around 7.5% at the moment. This would cost them £1,661 per month,…
