Nationwide suggests remortgaging

06 September 2007
Consumers can save money by remortgaging before their current deal ends, Nationwide has said.

The building society claims that this action could suit many consumers with fixed-rate mortgages who may be "shocked" by an increase in rates when their current deal expires.

More than 250,000 borrowers are expected to see their fixed-rate mortgage deals expire between October and December this year, research from the provider has claimed.

People need to avoid being moved onto standard variable rates (SVR) that can charge up to £200 more each month than fixed rates, Nationwide said.

Commenting, Nationwide director of mortgages Matthew Carter said: "To absorb some of this shock, borrowers need to consider remortgaging as soon as their deal ends, or beforehand dif their lender allows it."

Five interest rate hikes over the last year has led to SVR reaching 7.75 per cent.

Charcol.co.uk product specialist Kate Tucker recently noted that borrowers with a £250,000 mortgage could save £450 each month by switching from a SVR rate to a loan at 5.34 per cent.

Find out more about how to remortgage

track© Adfero Ltd