The mortgage price war resulted in an 18% increase in the potential savings borrowers can typically make if they switch deals instead of rolling onto their lender’s standard variable rate.

Analysis by L&C Mortgages reveals that the amount a typical borrower can save by switching deals versus staying on the SVR has jumped from £1,259 per year in 2020 to £2,540 today.

L&C monitored the top ten lenders’ rates and compared the average of their SVRs with their lowest two and five-year fixed rates for remortgage borrowers, both now and a year ago.

It then analysed typical costs based on a loan of £150,000 over a 20-year repayment term.

The research uncovered huge potential savings for borrowers who shop around.

It follows many months of fierce competition among lenders, which has seen two-year fixed rates drop by 47 basis points compared to last year and five-year fixes plummet by 54 bps.

The broker estimates that £29bn of mortgages are due to mature in October, which could net borrowers £490m in savings if they take action 

L&C has launched calculator tools on its website to highlight to borrowers the high cost of doing nothing when their current deal expires.

L&C Mortgages’ David Hollingworth says: “Lender competition is fierce and that has helped drive mortgage rates down to new historic lows over the last 12 months.  

“That’s great news for mortgage borrowers coming to the end of a deal but also underlines just how important it is to shop around for a new deal. 

“With other living costs on the rise, it’s important that borrowers keep a tight grip on such a big part of their monthly budget.  

“Although borrowers have arguably never had it so good, it’s not all about headline rate and lender fees and criteria are important considerations in finding the right mortgage deal.  

“With the market changing so rapidly, advice will help homeowners make the most of the rates on offer.”