Mortgage holders urged to fix terms

HOMEOWNERS should fix mortgage rates immediately to avoid getting stung if banks increase interest rates, according to banking analysts.

There are an estimated 100,000 people on standard variable mortgages (SVR) but brokers say many of these will have the option of switching to a fixed rate mortgage at some of the lowest rates ever seen in the market.

Banks are tipped to follow Permanent TSB’S lead and increase interest rates for those on SVR mortgages despite no planning rate hikes from the European Central Bank (ECB).