Take advantage of fixed rate mortgages
Due to low interest rates, property owners have been encouraged to take up fixed rate mortgage deals.
Alliance & Leicester reports that they offer fixed rate mortgage deals that are as low as 2.99 per cent. Even though Alliance & Leicester has such a low rate, 81 per cent of their customers who are on standard variable-rate (SVR) mortgages have no intentions to search for a low cost mortgage product.
On the other hand, 14 per cent who have a SVR mortgage are willing to wait in anticipation until house prices and interest rates get better before seeking a new mortgage.
Nici Audhlam-Gardiner, director of Alliance & Leicester Mortgages commented: "It is perhaps unsurprising that some homeowners currently on SVR deals are reluctant to commit to a new mortgage, but past experience shows that fixed rates tend to increase in price before the base rate."
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