Remortgage popularity continues – but can the record rates last?
More and more homeowners are taking advantage of the unprecedented low mortgage rates available in today’s market, and switching to cheaper deals.
This could be attributed to three things:
- rising inflation
- widespread economic uncertainty
- lack of suitable housing stock
The popularity of remortgages is itself contributing to the availability of increasingly economical rates, as lenders compete to offer the best value deals. For the moment, market analysts predict the trend is set to continue in the short-term, but are unsure as to how long the record low rates can be maintained.
Swap rates – otherwise known as wholesale interest rates – fell throughout last year, until a rise was experienced in September. The cost of swap rates has been creeping up ever since.
As swap rates impact the cost of mortgages, lenders are now being forced to make a choice; absorb the rising costs themselves or increase their rates to maintain profits.
For the moment, lenders continue to review their pricing to offer reviewed terms or launch new product ranges. This means that if you are a homeowner coming to the end of your current mortgage deal or you are already on your lender’s SVR, exploring what options are available to you now, could save you money over the next few years.
To source a low-rate remortgage offer from across the whole of the market, speak to a Deal Direct adviser, who can guide you through all the available options. To obtain an instant on-line quote, click below.
For any remortgage question answered, call 0800 048 8828 today.
