David Blake, Principal Adviser, Which? Mortgage Advisers said:
“This won’t be the last rate rise we see and should act as a wake-up call for those who haven’t reviewed their mortgage recently.
“A quarter of homeowners are already on standard variable rates making it likely many are paying more than they need to, even without today’s rise.
“If you are sitting on your lender’s variable rate or are approaching the end of your current deal, it’s imperative you understand the costs of today’s rate rise and act quickly to protect your finances.
“People might well be surprised by the savings they can make through remortgaging and how much easier the whole process has become. But they need to act quickly before low rates become a thing of the past.”
Notes to editors
Which? analysis of Moneyfacts data in July 2018 found that the average SVR was 4.72%, compared to 3.01% for a fixed-rate deal.
Which? research conducted in June 2018 found that 26% of mortgage holders are on a standard variable rate, with this figure as high as 36.3% for those aged 60-69
Since the last time the base rate was above 0.5% (March 2009) to June 2018, the Which? Lived Inflation figures show that while overall CPI(H) rose by 21%, for private renters this was 24%, and for mortgage holders it was 20%.