Low rates trigger huge rise in remortgage lending.
According to market reports, the value of remortgage lending is at its highest point since the onset of the recession in 2008.
The rise appears to be due to a combination of three factors:
Seasonal. This time of year usually sees a rise in the number of people seeking to remortgage, as people look to make savings where they can, in preparation for the Christmas season. The historically low rates present an unprecedented opportunity for you to either reduce your monthly payments, or borrow more and keep your repayments the same.
Uncertainty. The summer’s referendum result, combined with the US’s election result, have created a wave of uncertainty. Borrowers are responding by tying into long term fixed rate deals. That way, you know what to expect in terms of how much your repayments will be each month.
Fear. The market is already talking about a rise in mortgage rates for next year. The US has already seen an increase in mortgage product costs, and the fear is that the UK will not be far behind. Homeowners, who are on their lender’s standard variable rate, could find themselves very much out of pocket in the New Year, if they fail to act now.
If you are at all interested in saving money and/or guarding against possible rises in mortgage rates in the New Year, speak to Deal Direct.
For sound, impartial and honest advice on your remortgaging options, contact an adviser today.
Call 0800 048 8828 for a no-obligation quote.
