Homeowners urged to drop SVR and opt for fixed rate mortgages

It has been suggested that homeowners are throwing away nearly £6billion every year by not doing enough research when their initial fixed rate mortgage deal ends.

Research by moneysupermarket.com shows that by staying on their initial lender's standard variable rate (SVR), rather than opting for a new fixed rate mortgage, households are forking out an extra £2,600 in repayments over a 2 year period.

Head of mortgages at moneysupemarket.com Louise Cuming said: "People should bear in mind that for just a little work comparing mortgages, the rewards can be huge."

"Anyone coming to the end of a fixed term product should be looking for their next deal now and not leaving it until they have languished for a while on an SVR for a while."