"The good news is some mortgage providers have been lowering mortgage rates on their fixes and trackers in recent months, creating opportunities for some to switch to a more affordable deal. "
- Guy Anker, money expert at Compare the Market
Over one in ten (13%) admit they are not confident in their ability to meet their mortgage repayments over the coming months, according to new research from Compare the Market.
57% of mortgage holders say they are unlikely to switch their mortgage to a new deal while rates remain at current levels. By contrast, if the Bank of England had lowered rates in its latest meeting, 46% of mortgage holders said they would have been likely to shop around for a new deal, prompting lenders to compete for their business.
Many households recognise the important role of Bank Rate when it comes to their outgoings, with almost four in ten (39%) saying that they keep track of the base rate when managing their finances, including over half (51%) of 25–34-year-olds.
Nearly half of UK households (46%) feel more pessimistic about their finances in comparison to this time last year, according to Compare the Market’s research. Due to the higher cost of living, more than one in four people (26%) do not feel confident in being able to manage their household bills in the coming weeks, with many people cutting back on non-essential expenses.
Guy Anker, money expert at Compare the Market, commented: “I’d encourage everyone to proactively look for savings where possible to avoid needlessly wasting potentially £100s or sometimes £1,000s a year.
“The good news is some mortgage providers have been lowering mortgage rates on their fixes and trackers in recent months, creating opportunities for some to switch to a more affordable deal. Standard variable rate (SVR) mortgages, which most people revert to when a fix or tracker ends, tend to be very expensive. So, if you’re on one, or you’ll end up on one in the next six months, check if you can save with a new deal."
