Mortgage warning: Homeowners urged to act as stamp duty rush & ‘rate war’ may raise costs

Eleanor Williams, a Finance Expert at Moneyfacts.co.uk, commented: “While undoubtedly the pandemic has had a polarising impact on many households and their income levels, our research shows that for eligible borrowers, this could be a prime time to consider a new mortgage.

“This is particularly true if a borrower is on an SVR, as the difference in monthly repayment between being on the current lowest directly available fixed rate on our records of 0.91 percent, compared to the average SVR of 4.40 percent, could work out over £350 per month, or an eye-watering £8,500 if on the revert rate for 24-months – the typical term of a two-year fixed rate.

“After an unprecedented 18-months in the mortgage sector, some positivity is beginning to become evident with month-on-month falls in average fixed rates and record-low fixed rate deals launched recently.

“Despite the volatility seen in the market since 2020, those who have a five-year fixed rate which is now maturing may be pleasantly surprised that based on the average five-year fixed rate of 2.78 percent, they may be able to secure a lower rate now than they did in 2016, even if they are not in the lower LTV brackets.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.