Martin Lewis’ MoneySavingExpert.com says this means Barclays borrowers have less time to find a better mortgage rate before their existing deal comes to an end
Barclays has become the latest lender to cut the length of time mortgage borrowers have to lock in a new rate before their current deal expires.
The length of time you have to secure a new deal is decreasing from six months ahead of your current mortgage ending, to three months. This will come into effect from September 25. Martin Lewis’ MoneySavingExpert.com says this means borrowers have less time to find a better rate before their existing deal comes to an end.
It comes after Nationwide and Santander decreased the length of time you have to lock in a new rate from six months to four months earlier this year. Halifax and Lloyds are also cutting the length of time their mortgage customers have to four months on a staggered basis from this month.
HSBC, Virgin Money and NatWest still allow you to lock in a new mortgage deal six months ahead. The average two-year fixed residential mortgage rate today is 5.45%, according to Moneyfacts, while the average five-year fix is 5.12%.
If your mortgage deal is due to expire soon, you should compare rates now and speak to a mortgage broker to look at your options. It is then worth talking to your current lender to see what they can offer you. Getting a new deal with your existing lender is known as a “product transfer”.
Once you’ve compared all the different options available, take note of all the important bits of information about your current deal so you can get an accurate price comparison. This includes your current rate, the terms and length and any exit fees, as well as your loan to value (LTV).
If you do decide to secure a new mortgage deal, sure to check if you’d lose any fees if you decide to ditch your agreement later on, should something cheaper come along. Approximately 1.6 million fixed-rate mortgage deals will expire in 2024, meaning these households face higher monthly costs compared to what they’re paying now.
When your fixed rate ends, you’ll roll on to your lender’s standard variable rate (SVR) and these are normally more expensive. There are many factors to consider when fixing into a deal – for example, how long you want to fix for and how big is your remaining mortgage.
