Mortgage rates: Home buyers urged to switch to record low loans ‘before it’s too late’

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Nursing home owners should consider fixing into low rates before a practicable increase in costs

The average two-year fixed rate home allowance is now just 2.26 per cent, falling from a typical 2.55 per cent this but last year, according to analysis by Moneyfacts.co.uk.

Lenders are fiercely jousting for new customers, which is driving costs down for households.

But this could in a minute change if the Bank of England increase the base rate from its modish low of 0.25 per cent.

In recent weeks policymakers have warned that classifications should start to prepare for an increase in rates.

Households could shield hundreds of pounds by switching their mortgage from a Standard Inconstant Rate (SVR) to one of the more competitive mortgages on the market.

Charlotte Nelson from Moneyfacts, said: “Though take to tasks are still falling for now, borrowers will not necessarily need to see a base speed rise for rates to start to increase, as there will come a time where the only way to go from another record low is up.

«Borrowers sitting on their SVR or down attack to the end of their deal may be wise to consider a low fixed rate now, before it’s too most recent.”

Virgin Money, TSB and Skipton Building Society are among the providers that have on the agenda c trick recently cut rates, while HSBC also cut rates on tracker loans below-stairs one per cent for the first time.

Ms Nelson added: “The downward trend can largely be explained by the animated competition amongst lenders looking to offer the best possible deals in the retail.

«Lenders are perhaps starting to feel the pressure of an increased number of their buyers sitting on their Standard Variable Rate, knowing that if the Bank of England decides to enlarge rates, a substantial chunk of their mortgage book could affect to another provider almost overnight.

«This may be the catalyst that is keep rates low, as providers aim to lock customers into a deal with them.»

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