{"id":8300,"date":"2017-12-13T14:10:49","date_gmt":"2017-12-13T14:10:49","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=8300"},"modified":"2017-12-13T14:10:49","modified_gmt":"2017-12-13T14:10:49","slug":"borrowers-could-save-money-by-switching-mortgage-product-now","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/news\/borrowers-could-save-money-by-switching-mortgage-product-now\/","title":{"rendered":"Borrowers could save money by switching mortgage product now"},"content":{"rendered":"

Most lenders haven’t put mortgage rates up by the same rate as the Bank of England base rate rise, but some borrowers could still benefit from a switch.<\/strong><\/p>\n

Since the Bank of England raised the base rate last month, many expected to see a significant impact on mortgage rates<\/a>. In the months preceding the hike, lenders had started to increase rates in anticipation, but it seems mortgage rates have not followed the 0.25% base rate rise as expected, with an increase of only 0.18%.<\/p>\n

The Moneyfacts Mortgage Treasury Trends Report (not yet published) shows that the average standard variable rate<\/a> (SVR) has only increased by 0.14% since 1\u00a0November.<\/p>\n

Charlotte Nelson, Moneyfacts’ finance expert said that “just 56% of providers have passed on a rise to their SVR, with seven of them choosing to increase their rates<\/a> by less than the 0.25%, which has caused the average SVR to rise more modestly”.<\/p>\n

Switch to a better deal <\/strong><\/p>\n

Whilst the SVR<\/a> rise has been modest, it is still 0.12% higher than in December last year, encouraging some borrowers to think about switching to a better mortgage deal<\/a>.<\/p>\n

Despite many variable rate mortgage products seeing the full base rate increase, there could be significant savings to be made by switching to a fixed rate mortgage.<\/p>\n

According to Moneyfacts, borrowers could save as much as \u00a3192.66 a month by switching from the average SVR to a two-year 2.35% fixed rate (based on borrowing \u00a3150,000 on a 25-year repayment mortgage). Given that financial experts are anticipating future base rate rises, prudent borrowers may well make the move from their SVRs in favour of the fixed-term safety net<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most lenders haven’t put mortgage rates up by the same rate as the Bank of England base rate rise, but some borrowers could still benefit from a switch. Since the Bank of England raised the base rate last month, many expected to see a significant impact on mortgage rates. In the months preceding the hike,… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":8310,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4,26],"tags":[107,25,341],"class_list":["post-8300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-investment","category-tax-mortgages-money","tag-interest-rates","tag-mortgages","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/8300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/comments?post=8300"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/8300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media\/8310"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media?parent=8300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/categories?post=8300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/tags?post=8300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}