Rip off mortgage lenders to lose millions from clever comparison model
The rip off highlighted by Citizens Advice and the Financial Conduct Authority whereby mortgage borrowers are actually penalised for their loyalty is about to be addressed by the launch of a new comparison platform by leading online mortgage broker, Mortgages.Online, through the following link: https://mortgages.online/svr-calc.html
The practice of mortgage lenders moving from special deals to the lenders’ Standard Variable Rates at the end of the deal period is well known.
The vast majority of borrowers could benefit from much better terms either by moving to another mortgage provider or by taking a different product from their lender, but without overt guidance and advice they rarely do so. Despite the pressure from the Financial Conduct Authority few lenders actually encourage their borrowers to look around for a better deal.
Frequently too the Standard Variable Rate for existing borrowers is more expensive than the rates available to new borrowers.
To highlight the issue and help borrowers find the best rate for them, Mortgages.Online are making available a ‘Standard Variable Rate Impact Calculator’ to any borrower who is moving to their lender’s Standard Variable Rate to enable them to assess the impact and consider the alternatives.
Founder and CEO of Mortgages.Online, Paul Flavin, says: “Mortgage lenders have every incentive to lend at the highest rates they can get away with, and the easiest way for them to do so is by enticing new borrowers in on attractive packages and then moving them to more expensive rates afterwards. This is a well recognised practice, few lenders have done anything about becoming more transparent. It is very much up to the lenders themselves to take the initiative, and we hope the SVR calculator we are launching will help with this.”
Mortgages.Online are lobbying the regulators to force mortgage lenders to make the calculator available to all their borrowers at the time they advise them of the new rates.
“The best way to address this issue is to give mortgage borrowers an easy tool to prompt them into action,’ claims Paul Flavin, “and we are making our calculator available to regulators, lenders and any journalists who are writing about the inequity of the Standard Variable Rate practice.”
ENDS
Notes for Editors:
To find out more please email Paul Flavin on paul.flavin@mortgages.online
You can also call 03300586058 or 07968822606 or visit https://mortgages.online/