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Time to review your mortgage rate
With Bank of England interest rates now at 1.5% and with the expectations that they will be cut again in February, now is the time to review your existing mortgage deal.
Many lenders are not passing on the full interest rate cuts to customers on a Standard Variable Rate (SVR), some of whom could be paying more than they need to. However, with the base interest rates so low, the tracker rates offered by lenders are not as competitive as they were 12 months ago - and of course if interest rates were to rise again then borrowers with tracker rates would see their monthly payments increase with every interest rate rise.
Tony Rice of Bedford-based specialist mortgage brokers TMP Mortgage Zone, said: "No-one has a crystal ball, but many analysts predict interest rates will remain the same or be cut again in 2009. Some predict they may go up again though in 2010 and beyond to 6%-7%. The important thing is to review your mortgage regularly, especially if you are paying your lender's SVR or your tracker or fixed rate mortgage deal is coming to an end within the next 6-12 months. Such a review can help ensure that you get a better mortgage deal before you need one as mortgage products can be pulled off the market by lenders at a moment's notice."
[ 30-01-2009 ]
