The Times reported this weekend that around £22.3 billion worth of mortgage deals will come to an end in April, meaning that potentially thousands of homeowners could be about to move onto more expensive Standard Variable Rates (SVR).
With the current period of uncertainty and slowing property prices, lenders are fighting for business, making now an ideal time for borrowers to switch to a competitive deal and save money on their monthly payments.
The Mail on Sunday speculated that a change in government in the coming months could see higher levels of borrowing and a resulting increase in interest rates. Again experts advised anyone on a Standard Variable Rate to put switching their mortgage to the top of their list.
Fixed rates have increased in popularity, and particularly long term deals, as borrowers seek to protect their finances for the foreseeable future. Homeowners are advised to consider their circumstances carefully before committing to a longer fixed rate however, as these deals tend to carry substantial early repayment charges. It’s important therefore to consider any potential change in circumstances, and whether more flexibility is required.
What the papers said about the right time to switch