Clever Mortgages, who arrange mortgages for all types of customers, be that with a poor or excellent credit score, has advised homeowners and potential purchasers that with fixed rate mortgages falling to their lowest levels in six months, reviewing mortgage offerings can lead to a substantial reduction of interest payments.
Following the announcement from the Bank of England that their interest rate is increasing, there were reports that mortgage rates and payments would also be increasing. However, this isn’t the full picture.
Whilst it’s true that the Bank of England increased their rate from 4.25% to 4.5% (May 11th, 2023) and this will impact tracker mortgages, it won’t impact all mortgages and in fact some rates are reducing.
New fixed rate mortgages have fallen to their lowest levels in six months, after consecutive monthly falls, this is according to Moneyfacts data.
The majority of mortgages start with an initial product period, if action isn’t taken at the end of this period, home owners will revert to the lenders Standard Variable Rate (SVR). These rates have continued to increase and are now on average above 7%. Imagine the substantial impact on your mortgage payments if you move from say a 2% interest rate to 7%!
All this means, homeowners need to conduct a mortgage review at least 6 months before the end of the current ‘deal’ and get a new product in place before moving to the lenders more expensive SVR. They could save a considerable amount by reviewing their mortgage at the right time.
Sarah Tinkler, Mortgage and Protection adviser at Clever Mortgages commented:
“It’s great to see lender fixed rate products reducing over the last few months, this is giving customers competitive products and confidence to review their mortgage and avoid the lenders often expensive Standard Variable Rate (SVR).”
“At Clever Mortgages, we’re happy to review a customer’s mortgage and give them advice about the right time to switch to ensure they don’t pay more than they should. The mortgage advisers at Clever Mortgages can check the mortgage products with your current lender and across the market with other lenders to ensure you get the best deal”
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