Borrowers 'should change deals'

Borrowers have been advised that they could be saving themselves up to £2,600 by changing their mortgage deals before they move to variable rates.

Many fixed-rate mortgages are due to expire over the next few months, and with common practice being for borrowers to automatically move onto standard variable rates (SVRs), Moneysupermarket.com says many could be missing a trick.

Consulting a mortgage broker and looking around for the best deal could save thousands, the firm suggests, but only if borrowers act fast.

In total, £5.9 billion a year could be saved in this way, Moneysupermarket added, and with interest rates currently at a six-year high of 5.75 per cent, the problem is particularly pressing.

"This shows how vital it is for homeowners to find the most competitive product when their fixed rate deal comes to an end," summed up Louise Cuming, head of mortgages at Moneysupermarket.