According to new research from Moneyfacts, the number of applications for re-mortgages is predicted to increase this year as many enjoying low interest rates now see their 2 year fixed rate mortgages expire.
The current mortgage SVR is 4.89% following the recent bank of England interest rate rise and this would see many homeowners hit with a huge hike in their mortgage payments unless they re-mortgage. In comparison to the current SVR, an average 2-year fixed rate mortgage is 2.47% which would reduce payments significantly for those currently on their lender’s standard variable rate.
Thousands of homeowners will have taken out a fixed rate re-mortgage when mortgage interest rates hit historic lows in 2017. Unfortunately, the tide now appears to be turning and it may be wise to take out a fixed rate deal sooner rather than later with the outlook uncertain when it comes to further interest rate rises this year.
If you are a homeowner currently in a position to re-mortgage your property and you are coming to the end of your fixed rate deal, then it is important to start the process of shopping around for a better mortgage. Not only can this reduce what you would pay on a standard variable rate but also the term of the mortgage if you are able to overpay.
If you would like to re-mortgage, then please speak to one of our advisors who can look at the whole of the market to find you the best mortgages.