Holding off for lower rates instead of fixing a deal is a “risky strategy”, as L&C Mortgages warns mortgage borrowers they could fall foul of potential further fluctuations in interest rates.

Mortgage rates fell back in the early part of this year before climbing again and recent reductions have failed to reverse those increases.

The average top ten lender two-year fixed remortgage rates dropped from 5.40% in November 2023 to 4.46% at the beginning of February 2024 before rising again to 4.94% now.

L&C says as a result, a £200k mortgage at the average of the top ten lender rates for a two-year fixed rate remortgage would cost £55 per month more now than at the beginning of February.

In the first four months of the year, borrowers using L&C’s Rate Check service have saved a total of £18.3 million over their deal period by moving to a better deal when rates were falling.

The average saving from hopping to a lower rate was £125 per month, cutting annual payments by £1,500.

L&C Mortgages associate director David Hollingworth says: “The average 2 year fixed remortgage rate has increased from the low point in February to sit almost half a percentage point higher now.”

“Protecting against any ups in rates by securing a deal sooner doesn’t mean missing out on any downs, should rates later improve before your switch completes. Rate Check can help borrowers maximise savings while still giving surety against losing out to rising rates.”