'Shop around' to get cheapest mortgage deal

Posted: 11 Jan 2010 10:26:46 GMT

Homeowners who are looking to save money in the new year should "shop around" in order to ensure that they have the cheapest mortgage deal, one expert states.

Ben Wilkie, editor at What Mortgage, says that providing homeowners' arrangement fees are not too high, it may be worthwhile for them to change their loan in order to shave a couple of basis points off their deal.

"Although rates are low at the moment, they are not going to stay low forever," he advises.

Mr Wilkie's comments come in response to recent data, which revealed that since April 2009 eight mortgage providers have increased their standard variable rate.

This is despite Bank of England interest rates remaining at 0.5 per cent.

He adds that more lenders are likely to follow this trend, but he believes they are not trying to "stiff customers".

"It is just that their costs have risen and they are passing on these costs," the editor concludes.

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