New data from Experian reveals that homeowners could save £3,500 [1] on their mortgage payments by switching to a new fixed rate two-year offer. Nearly 300,000 [2] people may be coming to an end of their current mortgage arrangements and could consider switching to cheaper deals. Brits could also save up to £1,200 by refinancing their cars and almost £500 by consolidating their debts with a balance transfer card [3]. With searches for balance transfer cards up 50% year-on-year in July, Experian identifies ways households can switch existing loans to better deals to help with their efforts to save money on existing credit

UK, 16 September 2022: New data from Experian reveals that households could save up to £5,200 a year on existing credit by switching to new financial providers. As the cost-of-living continues to increase, households could look to make savings by remortgaging their homes, refinancing their cars, or switching debts onto a balance transfer card.

To highlight the impact that switching might have on their personal finances, Experian has analysed data to calculate the savings a person might be able to make if they decided to switch to cheaper deals.

Remortgage savings

Working with partner L&C Mortgages, Experian calculated that homeowners could save over £3,500 if they switch to a new fixed rate two-year offer1. For instance, Brits with a £150,000 25-year mortgage loan on a lender’s standard variable rate (SVR) of 5.49% will have a monthly repayment of £920.24 1. According to L&C and Experian’s calculations, the same mortgage on a two-year fixed rate remortgage deal of 3.24% will have a monthly repayment of £730.18, representing a saving of £4,561 over two years (£190.06 per month)1. Taking the arrangement fee of £999 into account, this would still leave a homeowner better off by £3,562 over the two-year period.

According to Experian data, nearly 300,000 homeowners2 could be coming to the end of their fixed term deal in or over the next three months, and without remortgaging they risk rolling over to their existing lender’s SVR, which may be more expensive.

Car refinancing

Experian has calculated that if motorists were to explore the option of car refinancing, they could save up to £1,200 over four years by making a switch to a better deal.

After rates for new personal loans were increased by 22 basis points to 6.71% in June, a car owner with a £15,000 loan payable over four years will currently be making monthly payments of £355.81. And their total amount payable will be £17,078.78, including £2,078.78 interest3.

However, Experian calculates that a customer could potentially cut £1,000 off their original deal if they decide to switch to a loan with a lower interest rate. For example, there are loans with interest rates that start from 2.8% for the same loan amount and four-year period. This means that drivers could reduce the total amount payable to £15,861.95, with monthly payments of £330.46 and total interest of £861.954.

Balance transfer cards

Searches for balance transfer cards were up by over 50% on Experian’s comparison site in July compared to the same month last year5, as more Brits consider debt consolidation products as a way to save.

The Money Charity estimated each UK household has an average credit card debt of around £2,197 in July6. A customer with this balance, paying the minimum monthly payment of 5% (£110) with an APR of 19.9%, could save £493.76 if they were to transfer their balance to a balance transfer card. By switching they wouldn’t pay any interest and would also clear their debt quicker, as it would take them 19 months instead of 23.

James Jones, Head of Consumer Affairs at Experian said: “As rising prices continue to bite, many of us are exploring ways to help make ends meet. This can include switching existing borrowing to better deals, such as more competitive interest rates and repayment terms, which can translate into meaningful monthly savings.

“Before switching, it’s important to carry out an eligibility check using a comparison service. This will help you shop around and compare multiple deals and identify the offers you’re most likely to be accepted for, without damaging your credit score.”

David Hollingworth, Associate Director, Communications at L&C Mortgages finishes: “Mortgage rates have been rising rapidly and homeowners who don’t shop around for the best deals could find themselves paying even more than they need to. Lenders have typically been passing on the latest base rate rise to those on standard variable rates, which are higher than the best deals on the market.

“With more rises on the cards it remains the case that switching could save thousands of pounds over a short period of time. A mortgage comparison site will help you check whether you are on the cheapest deal but remember to factor in any other costs or if there is an early exit fee associated with your current deal.  Advice will help you decide whether to make the switch and identify the best overall fit for you.”



[1] Comparisons and calculations made on 6th September by Experian. Remortgage calculations made by Experian and partner L&C Mortgages.

The last time Experian and L&C Mortgages released data on remortgaging in January 2022, they found homeowners eligible for a switch could make savings of £4,648.92 over a two-year period (taking the £999 into account). It demonstrates how remortgaging in today’s market does yield less savings than it might have done for a homeowner six months ago.

The calculations are based on the following lenders rates:

  • Virgin Money SVR 5.49% (£920.24 p.m)
  • Barclays offers a 2-year fixed rate at 3.24% to 60% LTV with a £999 fee (£730.18 p.m)
  • As outlined above, the 2-year saving would amount to £4,561 but taking away the £999 arrangement fee would leave a total of £3,562 after the fee.

These calculations do not include any potential early repayment charges or exit fees. Borrowers should always check for any early repayment charges that may apply to their current mortgage as well as administration fees that may be charged by the existing lender when paying off the mortgage. They should also consider fees that may apply on the new mortgage.

[2] This figure is an estimate based on the proportion of mortgages that will have reached the 2-year milestone on Experian’s credit bureau, indicating that they could be coming to the end of a fixed deal.

[3] Statistics from The Bank of England:

These calculations are based on the following statement: Rates on new personal loans to individuals increased by 22 basis points to 6.71% in June, but remains below the February 2020 (pre-pandemic) level of 6.9%. The effective rate on interest-bearing credit cards increased by 19 basis points to 18.56% in June from 18.37% in May, and sits 1 basis point above the February 2020 level. The effective interest rate on interest-charging overdrafts in June was little changed at 20.23%.

[4] Comparisons and calculations by Experian are based on deals on the Marketplace from July 2021 – July 2022.

[5] Comparing credit card applications on Experian’s Marketplace from July 2021 – July 2022

[6] Statistics from The Money Charity:

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