By Pat Bunton L&C Mortgages

Mortgages are the single biggest financial commitment that most of us ever face.

Yet many of us are reluctant to make sure we're not paying too much.

Most borrowers are initially drawn to a lender by an attractive low rate, but there's often a sting in the tail.

When the rate ends they will normally be left to pay the lender's higher standard variable rate, typically 5.75%.

Problem

So what's the problem with this?

Put simply, your lender will be happy to charge you the higher standard variable rate, while at the same time offering far lower rates to attract new customers - maybe even your next door neighbour!

A recent Which? survey indicated that more than one in three borrowers in the UK are paying the standard variable rate, rather than a lower introductory rate.

This is at a staggering cost to them of �2.2bn a year.

Break the cycle

The simple way to break this cycle is to become a new customer yourself by switching your mortgage, or remortgaging to a new lender.

The potential savings are huge: if a borrower with a �100,000 interest-only mortgage reduced their rate by a very achievable 2%, they would save �2,000 a year.

This really comes down to shopping around, and a look at the "best buy" tables contained within most national newspapers will give you a good idea of the sorts of rates that are available.

An independent mortgage broker will also search the whole market for you and should take into account any small print that might catch you out.

If you're using a broker, double check if there's a fee, as some charge up to 1% of the loan, while others charge nothing.