Cash point

The average homeowner who fails to switch a mortgage when their deal comes to an end pays £2,664 a year more than they have to.

A study by online mortgage broker Trussle compared the best two-year fixed-rate deals from 16 major UK lenders to the standard variable rates borrowers are automatically transferred onto when they don’t switch to a new loan deal.

The £2,664 in extra interest equates to £222 lost each month.

There are currently two million borrowers languishing on SVRs of up to 5.69%, who could collectively save £5.3billion a year by moving onto a cheaper loan.

Ishaan Malhi, chief executive and founder of Trussle, said: “It’s vital that people know when the introductory period of their mortgage is coming to an end and are able to switch.”

There are some good rates available on two-year fixes.

The AA offers 1.49% for those with 40% deposits, with a £1,495 fee, and First Direct offers 1.65% on 25% deposits with a £1,470 fee. You can get 1.75% from HSBC on 20% deposits, with a £999 fee, and Sainsbury’s Bank offers 2.1% fee-free on 10% deposits.