Homeowners who took out fixed-rate loans just two years ago at interest rates of about 5% are remortgaging to save thousands of pounds, reports the Sunday Times.
According to Moneyfacts, the average 2-year fixed rate mortgage with a 40% deposit has fallen to 2%, its lowest ever. Even after allowing for early repayment charges, many borrowers, especially those with large loans, can be thousands of pounds better off after switching because their monthly repayments are so much lower.