Fixed rate mortgage costs reduced to attract variable rate mortgage-holders.
Cheap fixed rate mortgage deals are being offered by high street banks who say they want to help out those mortgage-holders due to be stung by lenders variable rate increases from 01 May.
The Woolwich who are the mortgage division of Barclays, are one such bank attempting to cash in by luring home-owners away from lenders variable rates with cheap mortgages.
The Woolwich has announced the launch of a new 2 year fixed rate mortgage offered for 70 per cent loan to value at a rate of 3.89 per cent. Monthly mortgage repayments for a £150,000 deal will be £783 which is a total cost of £18,792 over the two year fixed period.
Several large banks have now announced SVR increases. It is estimated that over a million mortgage-holders will wake up on May Day to increased costs, and remortgaging could be the only way forward in bringing those costs down.
Many were shocked to receive notification of their lender's SVR increase mistakenly believing that with a low base rate mortgage rates would stay low.
Having had access to low mortgage rates for over three years many mortgage-holders have forgotten that mortgages were not always so cheap. It is important to remember that mortgage rates on offer remain historically cheap despite recent increases.
If you are on a lenders SVR due to increase to 4 per cent or above, we recommend that you call a Deal Direct adviser today to review the range of competitive fixed rate mortgage deals on offer.
Time is running to switch deals before 01 May so make the call now.
