Around three quarters of the people who currently hold a standard variable rate (SVR) mortgage are free to look for a new deal.

According to Yorkshire Building Society, there are currently 2.3 million people in the UK who hold a SVR product.

However, around 75 per cent of people who hold these loans, a number which comprises 21 per cent of the total mortgage market, could look for a new deal and collectively save around £1.8 billion a year.

Tom Girling, mortgage product manager at Yorkshire Building Society commented: "The vast majority could make significant savings ... and with 80 per cent having at least 15 per cent equity in their home, they are free to switch lender right now."

Catherine Hearnden, director of MyMortgageDirect, recently said that people looking for a mortgage rate that is easy to understand should opt for a tracker product, as it changes in line with the base rate.

Written by Graeme Pieterson

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