People ‘could be saving on mortgage payments’

Four-in-five mortgage borrowers on a standard variable rate (SVR) could remortgage to a lower rate.

This is according to HSBC, which discovered that 39 per cent of the total mortgage market is now made up of SVR lenders.

It pointed out that a borrower with a £150,000 mortgage – with an average SVR of 4.86 per cent – could save over £1,000 in interest in just one year.

This could give households much-needed breathing space if they are struggling to meet their monthly repayments, as the last thing they want to do is default on a property.

Peter Dockar, HSBC head of mortgages, said: "The UK … has 3.6 million SVR borrowers who can switch to a more competitive rate. Even those with equity of just 15 per cent could each save a potential £90 per month."

According to the Council of Mortgage Lenders, some 8,200 properties were repossessed in the third quarter of this year – the lowest number of repossessions in a three-month period since 2007.

By Amy White