Mortgage fixes cost £948 a year
Close to a million homeowners could be paying almost £1,000 too much a year in mortgage payments.
Data released today shows that some 970,000 people signed up to fixed-rate deals in 2004, as interest rates soared.
But since then the picture has changed dramatically, and these people could be paying some £948 a year more than they need to, research from MoneyExpert.com shows.
This is because in 2004 the average fixed-rate mortgage charged 5.3 per cent interest, but these rates have now fallen considerably.
On top of this, if they fail to switch to a cheaper deal when their initial fixed-rate period expires, then homeowners could end up paying more than six per cent interest on their lender's standard variable rate (SVR).
"Homeowners need to keep their wits about them if they don't want to end up paying over the odds for their mortgages. The price of doing nothing can be steep," said Sean Gardner, MoneyExpert's chief executive.
"Interest rates have moved since 2004 and the mortgage market is different from two years ago. What was a great deal then is not quite as good now. Savvy homeowners can stay ahead of the game if they do a bit of homework and review the market.
"At the very least they should look to move their fixed-rate deal to another fixed-rate and should certainly not become stuck on their lender's standard variable rate - even if this means negotiating a new rate with the same lender."
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