There is no doubt that “remortgage” is currently the word on everybody’s lips. After recent CACI data revealed that the UK mortgage market is expected to see over £14bn worth of maturities in September 2016, the time for you to remortgage could be now.
A rise in the Bank of England base interest rate (BBR), something not yet seen in years, would normally be the trigger for a remortgage rush, as borrowers grab a fixed rate before SVRs climb. Instead, it has conversely been the drop in BBR which has triggered a surge in remortgage opportunities, as lenders renew competition and offer even lower rates on fixed rate deals.
Switching to a new deal might not just save you money, but also give you the opportunity to fix your interest rate to a low figure for the next several years. The market saw a generally big increase in remortgage business compared with last year, which shows consumers are already making the most of the opportunity to move to a better deal.
Standard Variable Rates, or “follow-on rates” as they are sometimes known, are currently sitting at somewhere between 3 and 7 per cent. Although these are still historically low, not all lenders have passed on the Bank of England base rate cut, so for some borrowers the margin between SVR and base rate has effectively increased. Meanwhile fixed rates continue to drop, which makes this an opportune time to remortgage for many people, to possibly secure a better deal and long term peace of mind.
As your mortgage adviser we want to stay in touch with you, so that together we can make the most of any opportunities that could save you money by potentially remortgaging. It is important to review your current product, especially when the mortgage is due to come to cessation. We are there to help you make the right decision, find a winning strategy and have a general review of your finances.