Remortgaging home-owners rush to lock into cheap fixed rate mortgages.
According to recent figures there has been a significant increase in fixed rate mortgage demand from existing home-owners rushing to lock into a deal before rates rise.
Remortgage lending has increased to £4.2bn which is the highest it has been since July 2008. The surge in remortgaging activity has grown in the past few weeks due to concerns over rising mortgage rates.
While the BOE indicated just 2 weeks ago that the interest rate would continue at 0.5% for the next 3 years, the money market is not so confident. Interbank lending costs have therefore increased leading to fears of a likely mortgage rate rise.
In addition to a potential increase in fixed mortgage rates, housing prices are also on the rise making now the right time to remortgage.
There are still cheap fixed rate mortgages on offer from various lenders market-wide, some are even continuing to drop their rates. However rate cuts are not thought to continue much longer due to already rising funding costs.
Market experts are advising that fixed rate mortgages have bottomed out and therefore there is no point in waiting for rates to fall further, in fact there is a significant risk rates will rise not fall.
If you want to remortgage to a lower rate while cheap deals remain on offer, you are advised to contact an impartial independent 'whole of market' expert for advice and a competitive quote.
Call Deal Direct today to switch to a cheaper deal, buy a new home or release equity in your home.
For a market-wide mortgage search and a low rate quote,
call 0800 048 8828 today.
