Industry experts are predicting a huge surge in the number of people looking to remortgage, but is now the time to remortgage?
Recent mortgage price wars have led to a significant drop in interest rates on fixed term deals.
Predicted interest rate rises in the coming year are also encouraging home owners it’s time to remortgage and tie themselves into a low interest fixed rate while they can.
Figures from The Council of Mortgage Lenders currently show a quarter-on-quarter and year-on-year increase in lending for remortgaging.
Property investment manager Danny Luke says:
Recent mortgage price wars have undoubtedly led to a range of highly competitive products for those looking to remortgage their property, which are bound to attract home owners looking to cut their monthly outgoings.
Someone with a mortgage of £150,000 who has been paying 4% could now remortgage to take advantage of one of the many 2% fixed rate deals currently available and save themselves around £3,000 a year, so it’s definitely worth looking at your individual circumstances and whether there are better mortgage deals available.
Of course, you should always look at the full details of the product on offer, including any product fees, to ensure you’re getting the best deal for you, but the low interest rate fixed term deals are unlikely to be around for long, so if you’ve come to the end of the tie-in to your existing mortgage products it’s definitely the right time to shop around.