Fixed-rate mortgages make up the majority of homeowner loans in Britain, new figures have revealed.
According to research from Faironvestment.co.uk, 52 per cent of Britons are on a fixed-rate deal and are missing out on benefiting from recent falls in the base rate.
Of those questioned 29 per cent have standard variable rate packages, meaning these customers are likely see a reduction in costs as a result of the Bank of England’s recent decision.
And 16 per cent are on a tracker mortgage, meaning these people – providing their loan does not have a collar in place – may also benefit from the lower base rate.
Chartered financial planner for Fairinvestment.co.uk Sharon Bratley noted that the Bank’s move is “great news” for those on tracker mortgages.
And she also urged customers looking to remortgage to shop around, advice which those thinking of switch as part of a debt management plan may wish to note.
The Building societies Association recently urged homeowners struggling to meet their repayments to contact their mortgage lender as soon as possible in order to discuss a solution to the problem.
By Tom Musk