Fixed rate remortgage deals are looking favourable for borrowers
Fixed rate remortgage deals are looking favourable for borrowers, but despite fixed rate remortgage deals looking a favourable option for borrowers, many home-owners are taking a 'wait and see approach' to remortgaging. The base rate is at the historically low level of 0.5 per cent and many housing market experts are strongly suggesting that now is the time for borrowers to take a close look at the remortgage deals on offer.
UK mortgage lenders, using the base rate as a starting point, are keeping a close eye on the Bank of England. If the central bank starts moving in the direction of a base rate hike, it won't be long before lenders will recalculate their current mortgage rates. Home-owners should be watching out for this so they can make an informed decision, as to what action to take and whether a fixed rate re-mortgage deal is the way to go.
Market experts say that at the moment, remortgaging is looking like a good decision in most cases, which could save home-owners thousands of pounds over time. Mortgage rates have already started to rise and, are predicted to continue to rise as pressures in the Eurozone and liquidity in the wholesale funding markets, continue well into 2012.
Despite the slight rate rises, fixed rate mortgages are still cheap and some lenders have reduced the cost of longer-term purchase and fixed rate re-mortgage deals making remortgaging a good move.
