With standard variable rates likely to rise, borrowers could save as much as £6,500 by switching to a fixed rate mortgage, according to new research.
With the Bank of England Monetary Policy Committee due to make its next announcement on Thursday 2 August 2018, economists have warned that interest rates may rise, and the likelihood is that historic low rates will not last forever. Yet borrowers on a standard variable rate mortgage could save up to £6,500 over three years by switching to a fixed rate mortgage now, according to latest research from Legal & General Mortgage Club.
Those who are coming to the end or who have already reached the end of their mortgage term, and are now on a standard variable rate, could save more than £2,000 per year on their monthly mortgage payments, according to the study which sends a wake-up call to borrowers to secure advantageous rates before a rise and a move into unchartered waters.
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Kevin Roberts, director at Legal & General Mortgage Club says: “These near all-time low rates will not last forever, so any borrowers who are looking to secure a good deal should speak with a mortgage broker now.
“Not only can brokers offer a far wider range of products and options for consumers which they may otherwise not have access to, or the time to find, but their invaluable expertise will be able to help you secure a great deal on your mortgage.”