Borrowers should ‘shop around’ for best mortgage deal

Borrowers whose current mortgage deal is coming to an end have been urged to remain patient in order to find the best new deal.

Head of mortgages at moneysupermarket.com Louise Cuming issued the advice following last week’s interest rate cut, which has resulted in many lenders issuing new mortgage packages.

She explained that some customers may be able to save money by being switched to their current lender’s standard variable rate, while those who are moved to a fixed rate may be better off looking for a new deal elsewhere.

“Borrowers should make sure they are fully aware of the rate their provider moves them to at the end of their deal,” she explained, adding that “shopping around” is necessary before agreeing to a new mortgage.

Those who are looking to become debt free by paying off their mortgage as soon as possible may wish to follow Ms Cuming’s advice.

Abbey recently announced a cut in the interest rates for it two-year fixed-rate mortgages, bringing them down by up to one per cent.

By Tom Musk