Remortgages offer an amazing deal for the right borrowers

The latest news on remortgages shows that borrowers who have a good amount of equity in their current property and are on the lenders standard variable rate could reduce their monthly mortgage repayments if they swap to a tracker mortgage.

Tracker mortgages only go up when the Bank of England base rate rises as they follow this and are not subject to individual lenders decisions to increase rates when they see fit as with their standard variable rates. There are several mortgage lenders offering 2 year tracker deals.

The latest market predictions are that rates will not rise until the spring of 2015 so as well as comparing tracker mortgages borrowers wishing to remortgage are looking to the security of a fixed rate mortgage.

Fixed-rate mortgages are types of mortgage where the rate of interest is fixed for a certain period. Borrowers taking out these types of mortgages or remortgages usually find the length of term is for two or five years and one of the lowest deals recently launched is the Chelsea Building Societies five-year fixed rate mortgage at 3.19% with an arrangement fee of £1,495.

There is growing evidence that borrowers would like the longer-term security of ten-year fixed rate remortgages. Recently the lowest ever ten-year fixed rate mortgage offered by the Norwich and Peterborough Building Society had to be pulled due to demand. In just two weeks this mortgage completely sold out due to its popularity with borrowers who saw it as an outstanding deal and a save haven from the potential base rate rise around the corner.

It appears mortgage offers for periods of ten years still remain quite a limited product despite calls for more of them.