Remortgaging could save thousands

Changing from a standard base rate deal could save borrowers thousands of pounds in interest.

UK homeowners could save £12 billion over two years if they remortgaged to a better deal, according to a new report.

If homeowners on a standard variable rate (SVR) of 6.5 per cent switched providers to a market-leading fixed rate deal, they could save £4,560 in two years.

"It is incredible that over half of all mortgage lenders are charging borrowers a full two per cent more on their SVR than the current base rate," said Louise Cuming, financial expert.

"Lenders rely on borrower apathy, enticing them in with competitive introductory deals and relying on them to stay put once the deal is over," she added.

Borrowers paying the SVR are now being encouraged to consider remortgaging to one of hundreds of competitive deals on the wider market or face losing thousands in interest.