Warning to homeowners leaving fixed rate loan deals

THOUSANDS of mortgage holders can expect to see their repayments plunge by up to a third as they come off fixed rates.

However, they have been warned to be alert as many houseowners may be entitled to switch from a fixed to an attractive tracker mortgage and may be encouraged not to do so by the banks.

This news comes as the European Central Bank (ECB) holds interest rates at their record low of 1%.