Beat the base rate rise by fixing your mortgage, says MoneySuperMarket
Wednesday 29th October 2014
Homeowners coming to the end of their existing mortgage deal, or those currently on their lender’s Standard Variable Rate (SVR), should consider fixing now as the savings could mount up to thousands of pounds.
With the Bank of England expected to increase base rates over the coming months, price comparison website MoneySuperMarket has analysed mortgage data from the top five lenders (Lloyds, Halifax, Santander, Nationwide, Barclays and RBS) to determine how consumers can reduce payments.
The website says that homeowners currently on a lender’s SVR could be better off by up to £4,649 if they switched to the market leading two year fixed rate mortgage.
For those who don’t want to move away from their existing lender, there are still significant savings to be made by switching to the best two year fixed deal it offers, the firm reports.
“We know that a base rate rise is on the horizon, and while this may not be until next year, homeowners need to urgently consider their mortgage options while interest rates remain low,” explains Dan Plant, editor-in-chief at MoneySuperMarket.
He says that fixing is the only way to protect against future base rate rises and offers greater stability.
“By fixing now, homeowners would save thousands of pounds over the term of their new deal, and have bill certainty. We have been in a low rate period for some time now, and many homeowners may not have previously experienced a rising rate market – they should prepare now to avoid a serious shock in the near future,” he warns.