Mortgage comment articles from the FT and Mortgage Strategy are saying that we should be on the lookout for a boom in remortgages over the next year or so.
We are very much not surprised. James blogged about commentators predicting a remortgage boom way back in May. Related to this, Daniel wrote about standard variable rates just the other week.
Why are these related?
Because the biggest reason mortgage strategists are looking at a boom in remortgages is fairly simple: most people are on their lenders’ standard variable rate (SVR). The SVR interest rate is quite low for a lot of lenders at the moment.
Most new mortgages are being sold on fixed-rate terms, though, because people aanticipate the end of the low-rate golden age.
When the base rate rises, variable-rate mortgages will rise too. The Bank of England hasn’t set a date for a rise, but predictions seem to be aimed at the first quarter of 2015.
So, it’s a good time to shop around for the best deal, and seriously consider fixing your terms.
