7 Jan

Better mortgage rates due, says broker

Better mortgage rates due, says broker

UK homeowners will benefit from a range of cheaper mortgage products next year, as a result of a cash injection into the world's financial markets, it has been predicted.

The World Central Banks pumped money into the financial system in December, which has cut the three-month LIBOR from 6.65 per cent to 5.89 per cent.

This will enable banks to lend more cheaply and will prompt the introduction of cheaper mortgage products onto the market, according to Katie Tucker of John Charcol.

This will especially assist those looking to remortgage, she said, but warned that homeowners who are coming to the end of their fixed-rate deals must act immediately or run the risk of a delay that could hit them financially.

She explained: "Borrowers reaching the end of their deals in January or February often fall into the trap of leaving the arrangement of their remortgages until after the holiday period, leaving them insufficient time for the transfer to go through.

"Anyone whose rate is due to finish soon should act immediately to avoid automatically shifting up onto their lenders’ standard variable rates and potentially losing several hundred pounds each month as a result."

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