Your mortgage may already feel cheap but too many are missing out on potentially huge savings.

Current low interest rates mean monthly mortgage payments are as low as they have ever been in absolute terms but many are still paying over the odds in relative terms because a low rate of say 3.5 or 4% is far higher than the lowest rate currently available which is under 2%. Many are missing out on potentially huge savings.

There are almost 11 million mortgages in the UK and the average size loan is c £132,000. When rates were say 10%, £132,000 over 25 years cost £1,199.49 per month – and that hurt! The same loan at a rate of 4% costs only £696.74 so it feels cheap – but rates of 2% or less are available now and at 2% the monthly cost is only £559.49. Clearly the savings for those with larger loans are even greater.

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