As this week signals the return of five-year fixed-rate mortgage deals below 4%, could now be the time for you to re-think your mortgage deal?

Thousands of customers are sat on their standard variable rate (SVR) with the average SVR at 4.8% We estimate that a borrower with a £200,000 capital repayment mortgage on an average SVR would see repayments fall by £150 a month and would save more than £17,260 over five years with a 3.99% 5 year fixed-rate (assuming the SVR rose in line with Bank Rate).

Homeowners can now take advantage of competitive fixed-rate deals as expectations for the first increase to the bank base rate moved to January 2012. The Bank of England’s Monetary Policy Committee (MPC) voted this week to maintain the official Bank Rate at 0.5%, a record low. Earlier this year, the first increase to Bank Rate was expected in May but an increase is now expected in January to 0.75% and 1% in August next year.

While mortgage lending has picked up, the UK property market remains very subdued. Household finances are being squeezed and this has affected demand for home loans.

So it may well be worth fixing below 4%? But what about tracker and variable rates? What can you do if you’ve locked into a fixed-rate deal too early? All questions you should ask our specialist mortgage advisers. 

You can check what savings you could make by using the mortgage calculator tool on our website?    Click here to access our mortgage calculator.

If you would like to review your current mortgage deal, click here to request advice.