Money-saving expert Martin Lewis has urged homeowners to check their mortgages as interest rates have risen again.
Lewis warned that those on standard variable rates have about a month to hunt for a better deal before their bills go up.
In his Consumer Affairs newsletter on Wednesday, he recommended other owners who have fixed offers that will soon expire to also look for a new offer.
He said: ‘The cheapest fares are gone – if your plan is ending soon or you’re on the standard fare, check now to see if you can save.
Rising interest rates will soon affect mortgage repayments (AP)
“The base rate increase of 0.25% will likely take a month to trickle down to most standard variable rates (SVRs), although some trailing rates have already increased. This will add around £12/month per installment £100,000 mortgage.
The Independent reported that there were “50 fixed rate mortgage deals below 1% last fall, but now the lowest solution is 2.1%, which means someone with a mortgage of £200,000 over 30 years would now pay £120 a month more than the cheapest in October.”
Lewis added: “With further rate hikes scheduled and many lenders’ default standard variable rates heading towards 5%, it’s a must to check if you can save by changing the deal.
“You might not save as much as you did a few months ago, but compared to what you were doing now the change could still help you save £1,000.”
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Source: www.theargus.co.uk
This notice was published: 2022-05-12 10:45:51
