Increased demand for remortgage deals may sharpen lenders rates.
Lenders are experiencing an increase in demand for remortgage deals.
The rising demand for remortgage lending can be attributed in part to SVR mortgage holders looking to switch deals before their mortgage rates rise on 01 May.
Deal Direct can source the best remortgage deals from all UK lenders.
We can help anyone notified of a SVR rate increase to cut their monthly mortgage repayments through switching deals. For example for those of you with 25 per cent equity in your property, the Yorkshire Building Society offer a remortgage deal at 2.89 per cent with a £495 arrangement fee.
Since the base rate was cut to 0.5 per cent lenders low standard variable rates have allowed mortgage holders to save money on their mortgage repayments, but with announced SVR increases this may change.
While higher standard variable rates are going to be unpopular with mortgage holders, increasing rates enables lenders to improve liquidity which makes them more able to launch competitive mortgage rates at a future date.
On a positive note, SVR increases could help kick start the market for the lowest rate remortgage deals. With more SVR rises looking likely the remortgage market may become more competitive with rates cut by lenders trying to compete for your business.
For remortgage advice and the latest remortgage rates offered by UK lenders, contact Deal Direct who will search the mortgage market on your behalf for a great new deal.
