Summer 'peak time for homemovers'

Almost 60,000 more mortgage holders moved home in the summer of 2006 than in the earlier months of the year, claims Nationwide.

Pointing out that moving home is an opportunity to reconsider finances, Nationwide says mortgage holders could save up to £3,600 over five years by switching to its product.

It compares £133,000 five year fixed rate deals with a 90 per cent loan to value on which it offers a rate of 5.89 per cent with other providers.

The savings listed over the five year period run from £33.75 over borrowing from Alliance & Leicester to £3,622.58 that a Northern Rock mortgage holder would make by switching to Nationwide.

However, Brits still in a mortgage period need to take into account possible fees.

Penalties for paying off a mortgage early, which is what happens when switching mortgages during a deal period, are typically between three and six per cent of the mortgage.

On a £133,000 mortgage, a three per cent early repayment fee would amount to £3,990.

This could change in future as new European rules could cap the charges at one per cent.