Yorkshire Building Society home finance highlights 'mortgage limbo'

Date:Friday 16th July 2010
Author: Susanna Kavka

Written Max Freedman

Many people are currently stuck in 'mortgage limbo', according to a Yorkshire Building Society home finance spokesperson.

Tom Girling, mortgage product manager at the organisation, explained the concept is used to describe the situation of homeowners who are on standard variable rate (SVR) arrangements that are more expensive than current best buy deals.

He noted that there can often be a significant difference in price between the most competitive product on the market currently and what people are paying each month.

Research by Yorkshire Building Society home finance indicated that British homeowners could save £1.8 billion each year by changing their mortgage provider.

"Our analysis shows that the vast majority could make significant savings by switching to a better rate mortgage," remarked Mr Girling.

This week, the same firm launched a five-year fixed-rate mortgage deal at 3.99 per cent interest, which is the lowest rate for this type of product the organisation has ever offered.