According to data produced by Moneyfacts, December may be the best month to consider switching mortgage deals.
Since the recent increase in interest rates by the Bank of England, there has been a flurry of activity as home owners searched for the best fixed rate mortgage deal. Mortgage interest rates have steadily increased during the last three months, but finance experts warn that lenders may give a brief reprieve before the end of the year.
On 25 September this year, the average fixed rate deal over two years was 2.17%. However, that has now increased to 2.35%, according to Moneyfacts figures. A finance expert at Moneyfacts, Rachel Springall, stated that lenders often release some better buy rates to help them reach their year-end targets, and to generate customer interest. Springall added that lenders are still trying to attract new custom, and the best buy deals will help.
As the Bank of England raised interest rates to 0.5%, many of the cheapest mortgage deals were withdrawn by lenders. CeMAP qualified mortgage advisors are usually aware of the best deals available from lenders, and are able to guide you to the most suitable products. For many homeowners on an existing deal, it may not be prudent to switch deals unless you can do so without incurring early redemption charges. However, anyone on a lender’s Standard Variable Rate will almost certainly reduce their mortgage repayments by switching to a fixed rate deal.
