Could it be time to review your mortgage?

06th July 2018

As our article Short term fixed rates hit two year high illustrates, fixed rate savings accounts are marching upwards, as we approach the next Bank of England base rate decision, which is hotly anticipated to see the base rate increase to more than 0.50% for the first time in almost a decade.


But, as widely reported in the financial press recently, it's interesting that competition is still rife on some best buy mortgage rates too.

And while two year mortgage deals have been most popular of late, an article in The Sunday Times asks whether longer fixes are now a better bet?

Apparently, the gap between two year and five year deals is at its smallest since 2013, as two year deals have been increasing (much like with savings accounts) while competition has been most fierce on the five years deals, driving the rates down. And with the possibility of interest rates rising steadily going forward, albeit on a limited and gradual basis - for some, mortgage experts suggest, a longer term deal might suit their needs.

But, as The Financial Times points out, anyone looking at such a deal must check the small print, as it can come with painful charges if you decide to repay the loan early.

So, it all sounds like good news but as The Daily Mail reminds us, someone has to pay for this competition between the best deals available – and as usual, it’s loyalty that does not pay.

We know that if you don’t review your savings account on a regular basis, more often than not you can bet that over time you’ll end up languishing in an account paying you a pittance.

With mortgages, it can be a similar picture for those who don’t shop around at the end of their mortgage deal.

The article points out that while major banks have slashed fixed rate deals for new customers, they have failed to reduce rollover rates for new borrowers when their deal expires – which means that these borrowers end up burning through money if they don’t switch.

Of course, day in day out, we encourage you to review your savings accounts and we can help you make your savings work as hard as possible.

But you may also want to review your mortgage deal. We don't provide information and advice on this as we are savings specialists but, as ever, we know someone who can. If you’d like to speak to someone about your mortgage situation, call L&C on 0800 073 1937 or click here to arrange a call-back.

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Whether you're buying a new home, remortgaging to a new deal or buying an investment property, L&C can help and you'll pay no fee for their advice.

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