The temptation to “keep thing as they are” when it comes to your mortgage is easy, but you could find you’ll pay over the odds if you don’t shop around every once in a while.
Fixed rate home loans are one of the most common forms of finance for any homeowner, however recent reports indicate that as many as 1 in 6 of all consumers on such plans could find a better deal. It seems that consumers opting for fixed rate mortgages are willing to pay more for the safety of a guaranteed rate, rather than betting their repayments against interest rate rises.
However, the studies are not typical of every homeowner and vary quite dramatically depending on geographical location. Of the findings, around 7 in 10 of all homeowners in the southern part of Britain opt for fixed rate deals, mainly due to above average house prices. In the north of the country, around 4 in 10 prefer variable rates.
If you have had the same mortgage deal for some time, it can be quite beneficial to shop around every now and again. Despite changes in the economy, the mortgage industry is still fiercely competitive and chances of finding a cheaper deal than your current plan are high. This is especially true for later generations, whose home loan plans have remained “stagnant” for more than 10 years.
