REMORTGAGES SET TO INCREASE

May 14, 2015 by in category Mortgage News with 0 and 0

According to Nottingham Building Society remortgages are set to increase over the next 6 months with borrowers hoping to save up to £100 by remortgaging to a cheaper deal.

With five-year fixed rates the most popular choice for those switching deals, the Society found up to one in six homeowners are considering remortgaging over the next six months

Equivalent to £1,188 a year, the survey found remortgagors are targeting an average saving of £99 a month -.
Whilst industry experts are forecasting a surge in remortgaging in response to recent rate cuts which have seen five-year fixed rates drop below 2%, this survey suggests along with other similar studies suggests that remortgaging is going to increase with the Council of Mortgage Lenders figures showing lending for remortgaging increased 15% month-on-month last month.

With activity was up a quarter on a year ago and compared strongly to the 34% dip in March, research from Connells Survey and Valuation found remortgaging was the best performing sector of the market in April. Many lenders such are cutting rates on remortgage products.

With regard to the split between the type of rate preferred the Nottingham’s research shows five-year fixes are the most popular choice for customers considering remortgaging. 27% of potential remortgaging customers would choose a five-year fix ahead of 21% opting for a two-year fix.
Just 7% of those surveyed are opting for tracker rates while 4% would consider discount deals and 7% say they would choose a standard variable rate.
“The mortgage price war is interesting to existing homeowners who are keen to take advantage of the record low rates.
“With interest rates expected to rise in the coming years then now could well be the right time for many to consider whether there are savings to be had.
“Potentially savings are higher than the average £99 a month people are looking for. Someone with a £150,000 mortgage who moved from a deal at 4% to one at 2% could be around £3,000 a year better off.”
Ian Gibbons, Nottingham Mortgage Services, senior mortgage broking manager, said.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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