If you're one of the two million people in Britain currently sitting on their lenders' standard mortgage rate, it can seem as if everyone is trying to tempt you away. First there are the blandishments of your current lender, whose seductive letters offering you other products especially selected for their loyal customers aim to drag you onto a higher rate. Even if you can resist these, you may fall victim to panic over interest rates, or special offers on new mortgages.
Now there's a new kid on the block, the loyalty mortgage. These products, offered by Santander, the Co-op, Halifax and Barclays, offer reduced interest rates to current account holders, mainly on two-year fixed mortgages. But is now really the time to take the bait and move off your deal? Make sure you do the maths first."
IF YOU WANT TO FIX, GET THE BEST DEAL
If you've done all the maths and you still want to fix, make sure you make the right decision. The ''loyalty'' mortgages that are grabbing the headlines are all two-year fixed rates and, although some look competitive – the Barclays deal is at 2.95pc for up to 70pc loan to value – most specialists agree that fixing for two years is a bad idea. "This is the worst of both worlds," said Ms Bien.
This is because you would then need to find a new mortgage at a time when interest rates are projected to be much higher, so you'll be paying anothe>>>>READ full article - which has excellent information even for us Americans.