Don't rush in where agents fear to tread

Published:
Topic:
Press Release,Money,Mortgages

Following last week's interest rate cut, Louise Cuming, head of mortgages at moneysupermarket.com said: "There's no doubt about it, SVR's are back in vogue following last week's base rate drop.  For many customers simply reverting to the default SVR rate their lender subscribes them to at the end of their current deal may save money on their mortgage bills; as doing so incurs no fee. If customers were to change onto a fixed rate deal, a percentage fee may be charged, knocking off the bonus of a previously best buy fixed rate.  As such, borrowers should be vigilant and not blinded by headline grabbing fixed rate deals.

  • Borrowers encouraged to be patient 
  • No need to make the most of headline grabbing rates

Following last week's interest rate cut, Louise Cuming, head of mortgages at moneysupermarket.com said: "There's no doubt about it, SVR's are back in vogue following last week's base rate drop.  For many customers simply reverting to the default SVR rate their lender subscribes them to at the end of their current deal may save money on their mortgage bills; as doing so incurs no fee. If customers were to change onto a fixed rate deal, a percentage fee may be charged, knocking off the bonus of a previously best buy fixed rate.  As such, borrowers should be vigilant and not blinded by headline grabbing fixed rate deals.

"For example if you wanted to switch to an Alliance and Leicester interest only two year fixed rate at  4.89 per cent plus one per cent fee for a £150,000 mortgage, you would be spending an extra  £1,170.00* over the two year period than if you were to default to their five per cent SVR. Whilst lenders quickly removed tracker rates for new customers in the wake of last week's base rate cut, the projection of further cuts means that borrowers might do best to play the waiting game on their SVR.

"Borrowers should make sure they are fully aware of the rate their provider moves them to at the end of their deal, and do the necessary shopping around to see if there is a deal which suits them better This isn't just the lowest number in the high street window, borrowers must factor in the arrangement fee, deposit required and whether or not their credit record will enable them to get the deal they want."

-Ends-

*please see tables below

Alliance & Leicester

 

 

 

 

Capital & Interest

 

 

 

 

 

Loan Amount

Total Cost over 2 Years (4.49% + 1% fee)

Total Cost over 2 Years (4.89% + 1% fee)

Total Cost over 2 years (5.00% SVR)

Difference Between SVR & 4.49%

Difference Between SVR & 4.89%

£50,000

£7,237.04

£7,517.12

£7,095.36

-£141.68

-£421.76

£100,000

£14,473.84

£15,034.48

£14,190.48

-£283.36

-£844.00

£130,000

£18,816.16

£19,544.80

£18,447.60

-£368.56

-£1,097.20

£135,000

£19,539.84

£20,296.56

£19,157.28

-£382.56

-£1,139.28

£140,000

£20,263.52

£21,048.32

£19,866.72

-£396.80

-£1,181.60

£143,000

£20,697.68

£21,499.28

£20,292.48

-£405.20

-£1,206.80

£145,000

£20,987.20

£21,799.84

£20,576.16

-£411.04

-£1,223.68

£149,000

£21,566.24

£22,401.44

£21,143.76

-£422.48

-£1,257.68

£150,000

£21,710.88

£22,551.60

£21,285.84

-£425.04

-£1,265.76

£200,000

£28,947.92

£30,068.96

£28,380.96

-£566.96

-£1,688.00

£250,000

£36,184.72

£37,586.08

£35,476.32

-£708.40

-£2,109.76

Sourced by www.moneysupermarket.com 12.11.2008

 

 

 

 

 

 

 

 

 

 

Interest Only

 

 

 

 

 

Loan Amount

Total Cost over 2 Years (4.49% + 1% fee)

Total Cost over 2 Years (4.89% + 1% fee)

Total Cost over 2 years (5.00% SVR)

Difference Between SVR & 4.49%

Difference Between SVR & 4.89%

£50,000

£4,989.92

£5,390.00

£4,999.92

£10.00

-£390.08

£100,000

£9,980.08

£10,780.00

£10,000.08

£20.00

-£779.92

£130,000

£12,974.08

£14,014.00

£13,000.08

£26.00

-£1,013.92

£135,000

£13,473.12

£14,553.12

£13,500.00

£26.88

-£1,053.12

£140,000

£13,971.92

£15,092.00

£13,999.92

£28.00

-£1,092.08

£143,000

£14,271.44

£15,415.52

£14,299.92

£28.48

-£1,115.60

£145,000

£14,470.96

£15,631.12

£14,500.08

£29.12

-£1,131.04

£149,000

£14,870.24

£16,062.32

£14,899.92

£29.68

-£1,162.40

£150,000

£14,970.00

£16,170.00

£15,000.00

£30.00

-£1,170.00*

£200,000

£19,959.92

£21,560.00

£19,999.92

£40.00

-£1,560.08

£250,000

£24,950.08

£26,950.00

£25,000.08

£50.00

-£1,949.92

Sourced by www.moneysupermarket.com 12.11.2008

 

 

 

 

 

 

 

 

 

 

 

Abbey

 

 

 

 

 

Capital & Interest

 

 

 

 

 

Loan Amount

Total Cost over 2 Years (4.49% + £995 fee)

Total Cost over 2 Years (4.89% + £499 fee)

Total Cost over 2 years (5.00% SVR)

Difference Between SVR & 4.49%

Difference Between SVR & 4.89%

£50,000

£7,732.04

£7,516.12

£7,095.36

-£636.68

-£420.76

£100,000

£14,468.84

£14,533.48

£14,190.48

-£278.36

-£343.00

£130,000

£18,511.16

£18,743.80

£18,447.60

-£63.56

-£296.20

£135,000

£19,184.84

£19,445.56

£19,157.28

-£27.56

-£288.28

£140,000

£19,858.52

£20,147.32

£19,866.72

£8.20

-£280.60

£143,000

£20,262.68

£20,568.28

£20,292.48

£29.80

-£275.80

£145,000

£20,532.20

£20,848.84

£20,576.16

£43.96

-£272.68

£149,000

£21,071.24

£21,410.44

£21,143.76

£72.52

-£266.68

£150,000

£21,205.88

£21,550.60

£21,285.84

£79.96

-£264.76

£200,000

£27,942.92

£28,567.96

£28,380.96

£438.04

-£187.00

£250,000

£34,679.72

£35,585.08

£35,476.32

£796.60

-£108.76

Sourced by www.moneysupermarket.com 12.11.2008

 

 

 

 

 

Interest Only

 

 

 

 

 

Loan Amount

Total Cost over 2 Years (4.49% + £995 fee)

Total Cost over 2 Years (4.89% + £499 fee)

Total Cost over 2 years (5.00% SVR)

Difference Between SVR & 4.49%

Difference Between SVR & 4.89%

£50,000

£5,484.92

£5,389.00

£4,999.92

-£485.00

-£389.08

£100,000

£9,975.08

£10,279.00

£10,000.08

£25.00

-£278.92

£130,000

£12,669.08

£13,213.00

£13,000.08

£331.00

-£212.92

£135,000

£13,118.12

£13,702.12

£13,500.00

£381.88

-£202.12

£140,000

£13,566.92

£14,191.00

£13,999.92

£433.00

-£191.08

£143,000

£13,836.44

£14,484.52

£14,299.92

£463.48

-£184.60

£145,000

£14,015.96

£14,680.12

£14,500.08

£484.12

-£180.04

£149,000

£14,375.24

£15,071.32

£14,899.92

£524.68

-£171.40

£150,000

£14,465.00

£15,169.00

£15,000.00

£535.00

-£169.00

£200,000

£18,954.92

£20,059.00

£19,999.92

£1,045.00

-£59.08

£250,000

£23,445.08

£24,949.00

£25,000.08

£1,555.00

£51.08

Sourced by www.moneysupermarket.com 12.11.2008

 

 

 

 

 

Download This Press Release

Download as RTF

Related Links

Related Resouces

Media contacts

Tim Newhouse - PR Manager
Money

078723 79545
01244 370317
Tim.newhouse@moneysupermarket.com

 

Kimberley Southern - PR Officer
Mobiles and broadband
Paaleads.com/mortgage trade
Protection insurance

078723 79548
01244 370319
Kimberley.southern@moneysupermarket.com

 

Nicola Parry - PR Officer
Insurance and utilities

078723 79549
01244 370318
Nicola.parry@moneysupermarket.com

 

Emma Morris - Consumer PR Manager
Travelsupermarket.com
Moneysupermarket Shopping

07775 941689
01244 220671
Emma.morris@moneysupermarket.com

 

Ian Williams
Director of PR and Communications

07515 329671
01244 665793
Ian.williams@moneysupermarket.com

 

Clare Francis
Site Editor

07595 067818
01244 220650
Clare.francis@moneysupermarket.com