Borrowers face big interest rate hike for failing to remortgage... http://www.mortgagesquared.co.uk Enquiries@mortgagesquared.co.uk Tel:01202313182 Borrowers coming to the end of a two year deal could see their mortgage rate soar by an average of 2.64% if they don’t remortgage, new data has revealed. Analysis of interest rates on different types of mortgages has shown that a combination of low two-year fixed-rate mortgages and a lack of movement in lenders’ standard variable rates is making switching to a new deal even more cost effective for borrowers. According to Moneyfacts.co.uk borrowers who took out a two-year mortgage deal in July 2017 would have been paying an average rate of 2.26% on their repayments. Meanwhile, the average standard variable rate (SVR), the rate onto which borrowers automatically fall if they don’t remortgage, is currently 4.90%. This means any borrowers finishing a two-year fixed rate this month would face a hike of 2.64% if they do not remortgage. Gap set to widen What’s more this figure is only likely to increase, warns Moneyfacts.co.uk, as the record low deals that borrowers locked into in the summer of 2017 mature. Darren Cook, finance expert at Moneyfacts, said: “The jump between the two rates is likely to increase further still in the coming months if the average SVR continues to remain fairly static, as the average two-year fixed rate in 2017 continued to fall. https://www.mortgagesquared.co.uk/mortgage-finder/