28/09/2022
Think about switching, says FCA
Against the backdrop of rising rates and a worsening macroeconomic situation, the Financial Conduct Authority (FCA) is urging people to consider switching mortgage providers to find a better deal.
Big savings
Awareness of the need to switch has increased in recent years. Currently, 370,000 mortgage holders could save money by switching their mortgage, down from 800,000 in 2016.
Even so, around 150,000 could still save over £1,000 a year each, proof that there are still big savings to be made. Indeed, switching could save some borrowers £1,240 each year.
Stick or twist?
For some, however, switching might not be the best bet. Those on reversion rates – the rate a mortgage ‘reverts’ to after a fixed-rate mortgage period ends – are not necessarily getting a worse deal, the FCA stressed.
Others, especially those thinking of moving or who want to repay at will without facing early repayment charges, could benefit from the greater flexibility of reversion rates.
Here to help
Whether you’re staying or going, the best option is usually… to explore all the options! Every homeowner’s situation is unique; we can work with you to secure the right deal for your needs.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
