LONDON, ENGLAND, January 14, 2010
/24-7PressRelease/ -- The low bank rates that are contributing to such poor saving conditions are unlikely to last for much longer, according to new reports. Leading economic analysts have forecast that bank rates may increase as early as March.
This is therefore the time for homeowners to reconsider switching to a fixed rate mortgage, advises MoneyStand.co.uk, a thriving hub of information and ideas for personal finance related issues such as debt, savings,
IVA and mortgages.
With bank rates slowly increasing, households in the United Kingdom currently on a standard variable rate (SVR) mortgage should investigate if they would be better off with an alternative option, such as remortgaging and taking advantage of fixed rate mortgages currently on the market.
Although the government's bank rates are the lowest they have been this century, these sudden increases in SVR mortgages rates are likely to become more common place with more lenders increasing their rates as bank rate increases become more imminent. Already many mortgage lenders are beginning to increase their standard variable rate mortgages and many other lenders are tightening up in anticipation of bank rate increases in the near future.
Taking a fixed rate mortgage is not only likely to reduce monthly outgoings but will also provide the certainty required in order for people to plan their personal finances properly around their payments. Increases in SVR mortgages can provide additional stress for homeowners already struggling to pay bills and other monthly commitments. Switching to a fixed rate mortgage is one way homeowners can take back some control.
Millions of UK homeowners simply stick with their SVR mortgages as this is the default rate that banks use when special deals have finished.
"Because SVR mortgages often provide the cheapest rates homeowners often overlook the possibility of using a fixed rate mortgage," said Matt Spencer, founder of MoneyStand.co.uk.
Mortgages are usually the largest and most important outgoing a household incurs. It is essential therefore that individuals face up to changes in the economic environment to help inform important mortgage decisions. "To turn a blind eye to the throws of change our economy is going through is to turn a blind eye to your financial security," warns Matt Spencer founder of MoneyStand.co.uk.
Personal Finance weblog MoneyStand.co.uk provides unbiased personal finance, IVA, mortgage and debt related information presented in a clear and easy to understand manner. The authors realise people are facing pressing financial times and seek to alleviate this where possible by providing useful and practical information.
For the latest financial news and advice on IVA, debt and personal finance visit our personal finance blog,
http://www.moneystand.co.uk.
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