Thursday, February 23, 2006

Save £2 500 on your Mortgage says Telegraph

3.5 million home buyers are paying £6 billion a year too much for their mortgages. 30% of borrowers are borrowing at their bank/building societies Standard Variable Rate (SVR) according to the Daily Telegraph.

For the biggest lender (Halifax) the SVR is 6.5%, while there are lots of deals @ 4.5 % for fixed or discounted interest mortages.

Eg a £100,000 mortgage.
Annual interest on SVR @ 6.5%= £6 500 per year
Annual Interest on @ 4.5% =£4 500 per year

To pay for this you must earn an extra £2,560 a year gross (£3,300 higher rate tax)
Who benefits? Not you.
Add to this that you could also be paying to much for your Home & Mortage Insurance.

Switching to a cheaper mortgage could be the best financial decision you’ll make this year.

Tags: save, money, mortgages, remortgages, , ,
Related: Mortgages Homepage, What is....home insurance?

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