Mortgage borrowers are missing out on what have become the lowest fixed-rate mortgages in decades, with half not having reviewed their mortgage since March 2009.
According to the website unbiased, many borrowers (37%) would still prefer a Standard Variable Rate deal, and if they did fix, would be prepared to do so at an unrealistic 3.4%.
March 2009 was when the base rate first hit 0.5%, and 16% of unbiased’s sample believe the base rate is so low they do not need to worry about reviewing.
But it points out that with fixed rates falling below 5% for the first time in decades and the threat of future interest rate rises becoming more real, home owners are potentially missing out on the best fixed-rate deals in over a genertion.
The website points out that in the last 24 years, five year fixed rates have never been lower than 4.99% and that the current average three-year fixed rate is 4.35%.
It says that despite the current market conditions and fixed rates reaching an all time low, home owners remain out of touch with what is available to them.
However, fixed-rate mortgages do remain popular with 18 to 34-year-olds, where 44% currently have one, a rise of 6% from 38% in January 2011. This suggests the security of a fixed rate is attractive to the first-time buyer market.
According to the website unbiased, many borrowers (37%) would still prefer a Standard Variable Rate deal, and if they did fix, would be prepared to do so at an unrealistic 3.4%.
March 2009 was when the base rate first hit 0.5%, and 16% of unbiased’s sample believe the base rate is so low they do not need to worry about reviewing.
But it points out that with fixed rates falling below 5% for the first time in decades and the threat of future interest rate rises becoming more real, home owners are potentially missing out on the best fixed-rate deals in over a genertion.
The website points out that in the last 24 years, five year fixed rates have never been lower than 4.99% and that the current average three-year fixed rate is 4.35%.
It says that despite the current market conditions and fixed rates reaching an all time low, home owners remain out of touch with what is available to them.
However, fixed-rate mortgages do remain popular with 18 to 34-year-olds, where 44% currently have one, a rise of 6% from 38% in January 2011. This suggests the security of a fixed rate is attractive to the first-time buyer market.
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