Taking advice could lead to savings for mortgage customers on variable rates
Following the announcement on November 2 of a rise in the bank base rate by 0.25% to 0.50%, mortgage customers on variable rates are being urged to take sound advice that could lead to major savings.
Ian Gibbons, Senior Mortgage Broking Manager at Nottingham Mortgage Services
(part of The Nottingham), said: “Because base rates have been at an historic low for the past ten years, some home owners may have become complacent and plan to just cover the increased extra cost of their mortgage, but for anyone who is already desperately trying to make ends meet this rate rise is bad news.
“In both cases the best course of action is to take expert advice and look at the options for moving to a fixed-rate mortgage, it could lead to a major saving.
“According to the Council of Mortgage Lenders there are 3.9 million people in the UK on a variable rate mortgage. In recent weeks we have seen a number of lenders increasing the cost of their fixed-rate products in anticipation of a bank rate rise. At the moment – while there are still some very competitive fixed-rate deals on the market - my message to anyone on a variable rate is to take action as soon as possible and enjoy the associated savings.
“For example with an average standard variable rate (SVR) of 4.60% on a £125,000 mortgage the monthly repayment is £702, if the customer moved to a 1.34% fixed-rate mortgage their monthly repayment would be £494 – that’s a saving of £208 a month or £2,496 a year.
“Obviously you do need to remember that your home may be repossessed if you do not keep up repayments on your mortgage.
“Our goal at Nottingham Mortgage Services is to offer professional whole of market mortgage advice by searching over 50 different mortgage lenders.
From first-time buyer mortgages, re-mortgages through to mortgages for a house purchase and buy-to-lets, we have been successfully helping people find the right deal on their mortgages for a number of years. Our expert advisers search the market looking for the most suitable deals and will explain the costs and benefits of each mortgage. They will only recommend a mortgage that is right for the customer.”
For more information about Nottingham Mortgage Services call 0344 481 0013, visit a branch or go to www.thenottingham.com/mortgages