Save hundreds by switching mortgages

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HOMEOWNERS could save hundreds of pounds a year by switching from their standard variable rate (SVR) mortgage to a fixed rate product.

Yorkshire Building Society is encouraging people to look for new deals after many lenders increased their SVRs this year, leaving 1.5m homeowners with higher payments.

The building society said moving a £100,000 mortgage from a 4.74 per cent SVR to its two-year fixed rate deal could save borrowers more than £100 per month.

Yorkshire Building Society is cutting some of its rates by 0.15 per cent from Monday, meaning a 75 per cent loan-to-value mortgage will start from 2.64 per cent and a 90 per cent loan-to-value mortgage from 4.24 per cent.

Its SVR has been 4.99 per cent since July 2007.

Products manager Richard Barker said: “We encourage borrowers to do their research and shop around for the mortgage which suits them best and will save them the most money.

“For some that may mean they stick with their SVR but many will be able to reduce their repayments by switching.”