Mortgage borrowers are missing out on what have become the lowest fixed-rate mortgages in decades, with half not having reviewed their mortgage since March 2009.
According to the website unbiased, many borrowers (37%) would still prefer a Standard Variable Rate deal, and if they did fix, would be prepared to do so at an unrealistic 3.4%.
March 2009 was when the base rate first hit 0.5%, and 16% of unbiased’s sample believe the base rate is so low they do not need to worry about reviewing.
But it points out that with fixed rates falling below 5% for the first time in decades and the threat of future interest rate rises becoming more real, home owners are potentially missing out on the best fixed-rate deals in over a genertion.
The website points out that in the last 24 years, five year fixed rates have never been lower than 4.99% and that the current average three-year fixed rate is 4.35%.
It says that despite the current market conditions and fixed rates reaching an all time low, home owners remain out of touch with what is available to them.
However, fixed-rate mortgages do remain popular with 18 to 34-year-olds, where 44% currently have one, a rise of 6% from 38% in January 2011. This suggests the security of a fixed rate is attractive to the first-time buyer market.
If you wanted to discuss about what kind of fixed rate you could achieve to protect yourself, do feel free to get in touch.
Thanks as always for your attention.
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