'Move quickly' for cheap mortgages

Some £30 billion worth of cheap fixed-rate mortgages are set to come to an end this month, leaving homeowners to search for a new deal.

However, according to financial website moneysupermarket.com, 51 per cent of these customers have not yet started looking for a new deal, which means they may be missing out on offers with competitive rates.

Louise Cuming, head of mortgages at the firm, said due to the difficult economic conditions, banks are picking and choosing their customers, leaving many unable to find the more affordable deals which were once plentiful.

She advised anyone whose fixed-rate mortgage is coming to an end to approach their current lender and then compare rates across the market, approaching a broker for extra guidance if needed.

"Burying your head in the sand isn't going to help - start planning at least three months before the product is due to finish. Once you have made your choice, move quickly. Many people have been missing the boat by waiting to see if better deals pop up. In today's mortgage climate, a bird in the hand is worth two in the bush," Ms Cuming said.

Figures released yesterday (July 1st) by the Bank of England showed that mortgages approved for house purchases fell 28 per cent in May to their lowest level since records were first kept in 1993.