Vulnerability of home-owners on standard variable rate mortgages.
Holders of standard variable rate mortgages have recently realised just how vulnerable they are to rate increases. Since high street lenders such as the Halifax and RBS increased their rates, mortgage-holders have been looking for competitively priced deals elsewhere.
Some high street lenders have stepped into the breach by offering those on standard variable rate mortgages a lifeline, in the form of cheap deals. Barclays are just one high street mortgage provider to launch competitive products to lure mortgage holders away from other lenders.
Five year fixed deals are currently looking attractive to SVR mortgage holders as they presently offer good rates and security against a rate increase. Those who fix products with no early repayment charge also have the added bonus of being able to switch to a cheaper rate at a later date, without incurring any early redemption charge.
Two and three year fixed deals offer lower rates but just as the BOE base rate starts to rise your deal could be coming to an end which would not be good news. Five year fixes that offer low rates are tempting, but there may be small print and costs vary which can affect how truly affordable the rate really is. We therefore recommend that you seek impartial expert advice.
Holders of standard variable rate mortgages vulnerable to a mortgage rate rise should contact Deal Direct today. We will offer both mortgage advice and up to date comparison of the most competitive deals on offer.
