Rates rise but bigger savings on mortgages

Mortgage customers can save more now by shopping around than they could when interest rates were lower, according to Moneyextra.com.

Instead of shrinking as rates rise, the savings available to mortgage buyers who take the time to shop around have actually increased according to the website’s research.

It claims that annualised savings on average mortgages have risen from £2,832 to £3,132 over the last three months.

Robin Amlot of Moneyextra.com said: "Getting your mortgage right is the key financial decision in terms of financial efficiency. The potential savings on your mortgage account for almost 70 per cent of the total savings to be made."

And there are even greater savings to be had when comparing the best with the worst products, with the difference between the two growing by £150.10 over the last three months.


However, the same trend does not apply to personal loans. The interest spread is less and the difference fell from £386.76 a year ago to £279.36.