Landlords should not fall into this trap

The vast majority, some 81%, of Landlords think that their mortgage providers quietly hope they will slip onto their Standard Variable Rate (SVR) at the end of their fixed rate period.

And a significant percentage do precisely that a new poll has found, finding that 38% have been on their mortgage lender’s SVR at some point in the past.

Of these people, 17% said they have been on their lender’s SVR for up to 12 months, and 21% said they have been on their lender’s SVR for 12 months or more.

Less than half, 45%, of respondents could confirm they had never been on their lender’s SVR, while 18% had no idea whether they had or not.

Nearly half of those polled, 47%, said they do not believe their current mortgage provider would care if they moved to another lender, which reflects the dysfunctional relationship between borrowers and lenders.

Only 38% of people felt their mortgage provider would care if they took their business elsewhere while 15% said they didn’t know whether their lender would care or not.

The vast majority of borrowers believe their mortgage providers quietly hope they’ll slip onto their SVR should be a serious wake-up call to UK lenders.

This suggests the relationship they have with borrowers is transactional at best and dysfunctional at worst. What’s crystal clear is that very few people believe lenders have their best interests at heart but are in it purely for themselves.

More worrying still, borrower apathy or a simple lack of awareness has seen nearly four in 10 people spend time on their lender’s much more expensive Standard Variable Rate at the end of their fixed rate period. Each month this happens people will be spending potentially hundreds of pounds or more unnecessarily.

Need help?

If you would like to review your current mortgage or looking for a new mortgage please do make contact and one of our advisers will be pleased to assist.