A drop in the cost of home loans may end up helping those who are coming to the end of their current deal.
Those with a five year fixed rate mortgage may want to shop around and consider getting a new mortgage. By doing so, may mean a saving of more than £200 a month, or £2,400 a year.
November 2009 saw the average five year fixed rate stand at 6.2%. Obviously, that was five years ago, and people locked into such rates will now be free to shop around for a better deal. Current deals include fixed rate five year mortgages for as little as 3.92%.
It shows the housing market is gaining momentum and that lenders have more confidence, despite the mortgage market review regulations that came into effect earlier this year.
One suggestion is for people to take out a new, cheaper mortgage, but continue paying the same making the same repayments per month, as this will pay off more of the capital borrowed from the bank, shortening the overall length of the loan.
Make sure you shop around and get the best deal for you if you want to remortgage your house. It could be worth your while.