UK's mortgage costs have fallen to record laws. Homeowners
in the United Kingdom could have hundreds of pounds in savings on repayment
costs.
Competition among lenders is a primary factor according to
moneyfacts.co.uk. Homeowners on today's typical 2.98 per cent rate can save
more than £100 monthly compared to two years ago.
Lenders ensured households will always be on the competitive
rate. Some are advised to switch providers when possible to retain the
competitiveness of the overall rate.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said:
“Just 20 months ago, the average two-year fixed rate stood at 2.97 per cent.
"This means that borrowers coming to the end of a two-year
fixed deal will find they can now get the extra security of a longer term for a
similar price to their old two-year deal."
Fixing for a longer term could protect families against
financial shocks in the coming years.
Ms Nelson added: “With the gap between the average two-year
fixed rate and the average five-year fixed rate standing at just 0.63 per cent
today, borrowers can now opt for the security of a longer term fixed rate with
little extra cost to their monthly repayments.
“Borrowers coming to the end of their fixed deal or those
who are currently sitting on their SVR should seriously consider opting for a
new fixed rate now, as there is no way of telling how low these deals can go.”
