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Many people spent much of 2009 sitting on their lender's standard variable rate – but it might make sense to mortgage elsewhere in 2010.

For many, it made sense to stay put in 2009. The all-time low Bank of England base rate meant that SVRs were as low as they had ever been and not many people could find a mortgage or a remortgage that was cheaper. But according to Moneynet, some borrowers might want to consider moving elsewhere.

It says that while people with a lot of equity in their homes might be better off staying with the SVR of 5.99% , those with slightly less value in their property could be paying over and above what they may pay if they were to find a new loan.

The website uses the example of someone with ten years remaining of a £40,000 mortgage and someone with the same term with a £70,000 mortgage. For the £40,000 borrower, an SVR of 5.99% would cost £443 a month, but for the £70,000 borrower it shoots up to £777 a month.

Andrew Hagger of Moneynet.co.uk says: "When you look at the rate and fee combinations available on fixed rate deals, you’ll see that there’s not really much of an incentive to switch with pricing as it currently stands. But if you look at a larger balance, say £70,000 then it does make financial sense to switch."

To find out whether you should switch or stick, talk to a mortgage adviser. they will be able to assess your situation and search through the whole of the UK mortgage market to find out whether you have the best deal you can get.

SOURCE: Moneynet.co.uk, 06/01/10

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