Egg has warned that the 0.25% increase in the Bank of England’s Base Rate, coupled with the same increase in August this year, will mean that the eight million plus people with standard variable rate mortgages could collectively be paying as much as £292 million a month more on their mortgages, or on average around £35.92 each.
However, Egg said many people could reduce their mortgage repayment by shopping around to find a more competitive mortgage. Egg’s research showed the average rates for a two-year fixed rate mortgage and a two-year discounted rate mortgage are 5.48% and 5.16% respectively, but the average rates for the top 25% most competitive fixed and discounted rates are 4.92% and 4.43% respectively.
