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• 27% of homeowners are now on their lender’s standard variable rate now compared to only 23% earlier in 2009
• One in four (25%) homeowners who are currently on their lender’s standard variable rate state they have no plans to change this

Almost a third (27%) of homeowners are now staying on their lender’s standard variable rate (SVR) according to new research* from Unbiased.co.uk, the professional advice website.  This has increased from 23% on their lender’s Standard Variable Rate (SVR) earlier in 2009, highlighting that more homeowners are now sitting tight on their low rate SVR, rather than remortgaging to a fixed rate. 

When describing their current mortgage situation, one in four (25%) of homeowners state they are on their lender’s SVR and have no plans to change this.  This rose to over one in three (36%) of those aged 55 and over.  With best buy standard variable rates generally remaining lower than best buy fixed rate mortgage deals in the current market place, it appears homeowners may not be considering  a move to a fixed rate unless the base rate starts to rise. 

The research also shows there are now only 11% of homeowners moving to another mortgage deal once their discounted, fixed or tracker rate deal comes to an end, compared to a slightly higher 12% earlier in the year. 

David Elms, chief executive of Unbiased.co.uk comments, “There are a large proportion of home owners out there who think that sitting on their lender’s SVR is the best solution for them. We have gone through a period of falling base rate, making SVRs suddenly an attractive option compared to many fixed rate deals. And with good mortgage deals hard to secure, many homeowners are finding it tough to keep track on which is the best mortgage for them and when is the best time to move onto a new deal. While in the past it could be financially crippling to remain on your lender’s standard variable rate after your mortgage deal had ended, now it is becoming a more popular option. It is however worth noting that fixed rate deals will sharply increase should the base rate go up and borrowers may find competitive fixed rate deals hard to come by.

“Those remaining on SVRs need to stay alert and once the base rate starts to rise again and the market improves, ensure they act fast to secure a new deal which they can rely on not to suddenly rocket in monthly payments.  Homeowners should seek mortgage advice from a whole of market mortgage adviser or an independent mortgage broker to ensure they get the best deal at the right time.  Only a whole of market mortgage adviser and independent mortgage broker can source products from the whole of the market place.”

ENDS

For further information on Unbiased.co.uk, the professional advice website pleases contact:

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Notes to Editors

* Opinium Research carried out an online poll of 2,026 British adults from Friday 15th to Tuesday 19th May 2009.  Results have been weighted to nationally representative criteria.  38% are purchasing with a mortgage or loan and 27% of those are on SVR mortgage – this calculates that 9.6% of UK adults are on a standard variable rate.

So according to the stats there are 22.3 million people buying a house with a mortgage in the UK and 4.7 million on an SVR mortgage. That is based upon 48.772 million adults.

Unbiased.co.uk, the professional advice website

Unbiased.co.uk is the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs.  In 2008, Unbiased.co.uk fulfilled over half a million searches for local, professional advice. 

The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is inviting accountants to sign up for its ‘find an accountant’ service.  These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options. 

IFA Promotion, the organisation behind Unbiased.co.uk, is now in its 20th year, and was set up to promote the benefits of independent financial advice to the consumer. 

Unbiased.co.uk’s product provider sponsors

Registered Office: Unbiased.co.uk is the consumer brand of IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606

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