Is this the end of the mortgage price war? Savers may be rejoicing at the news that interest rates may rise sooner than expected, but mortgage borrowers could find that best buy deals are suddenly withdrawn next week and that home loan applications start to take months.
Brokers say that mortgage rates will in general not rise straight away. This means that there will still be time to find a good deal for those who want to move from a lifetime tracker or remortgage from an expensive standard variable rate (the rate you revert to when your initial deal ends) to a more secure fixed-rate mortgage.
Someone already on a 2.5 per cent tracker deal with Nationwide, with a £200,000 mortgage over a 25-year term, could save £107 a month by switching to the bank’s two-year fixed deal at 1.39 per cent, says Aaron Strutt, of Trinity Financial brokers.