The number of borrowers on lenders’ Standard Variable Rates is now 2.3 million, representing 28% of the total mortgage market, according to Yorkshire Building Society. Again this week the minuets for the Bank of England last meeting came out with 1 member recommending an increase in rates. An increase in the Bank of England Base Rate will come, whether this is late this year or early next year, but it will come. Therefore, it would be a good time to now to consider moving onto a fixed rate deal as these deals are currently offering excellent value. The advantage of the fixed rate will be that you will avoid the hit as rates start to rise over the next 12-18 months. There are now a large number of competitive deals available for 2-year fixed rates at under 3.50% and 5-year fixed rate deals can be secured at around 4.35% and above.
Who should consider remortgaging, well currently anyone who is on a Standard Variable rate of 3.50% or higher, anyone with 15% or more equity in their property, someone with no adverse credit and anyone who has the ability to evidence their income. However, if you are with the Halifax you are also able to consider a product transfer this all depends on product wants and loan to value. If you would like to discuss the options open to you for a remortgage please do not hesitate to contact us.