Borrowers could save by switching mortgage

Share This:

• 

Text size: A A A

Nearly a million homebuyers could be missing out on up to £1,000 every year, it has been claimed.

Figures published by MoneyExpert.com have shown that 970,000 people took out fixed rate mortgages during 2004, when the average interest rate was 5.3 per cent.

Since then the Bank of England has lowered rates significantly to their current level of 4.5 per cent – a drop which could cost borrowers an unnecessary £978 every year.

"Homeowners need to keep their wits about them if they don’t want to end up paying over the odds for their mortgages," said Sean Gardner, MoneyExperts chief executive.

"Savvy homeowners can stay ahead of the game if they do a bit of homework and review the market."

Research suggests that those choosing to follow their lenders standard variable rate will end up paying more than six per cent interest.

Instead homeowners can escape unnecessary costs at the end of their fixed rate period either by negotiating a new fixed rate with the same lender or by shopping around for better fixed rate deals.


© Adfero Ltd

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.