First Direct provides the cheapest standard variable rate (SVR) mortgages available, a leading mortgage poll has claimed.
Based on the cost of a £150,000 SVR mortgage, First Direct customers were found to have the best mortgage rate interest payments of £8,470.89 over the course of 2005.
Stafford Railway Building Society was the runner up in the SVR poll, with interest payments of £8,474.59, followed by Egg (£8,484.66) Harpenden Building Society (£8,484.66) and HSBC (£8,501.71).
The poll rated UCB Home Loans bottom of the league at £10,496.30 in interest payments over the last year, followed by Birmingham Midshires (£10,384.73) and Scarborough Building Society (£10,359.66).
While nobody signs up to SVR payments, which are charged after an initial deal has expired, a surprising number of people are happy to leave their mortgages with the same provider once the offer that they joined for has ended.
Almost half of the respondents to a recent poll said that their mortgages were being charged at a default SVR because they hadn’t changed providers after their introductory offer ended.
© Adfero Ltd