Homeowners are being encouraged to do the one thing that many might find hard to do and that is let go of loyalty they have built up toward their present lender. That lender might very well have been the one and only that gave them the opportunity to become homeowners. Yet, their loyalty must be cut loose to take advantage of the current remortgage deals on the market.
April was quite the month for remortgage activity as those who searched out the mortgage lending tool mainly sought out a five year deal. According to the latest data from LMS, almost 50% of the total of all remortgage activity during the month of April was 5 year deals. This is a six month high. In the month prior, only 36% of the entire remortgage market was made up of 5 year deals.
Although Brexit has created a cloud of uncertainty hanging over the UK housing market, a recent Zoopla survey indicates house owners are quite optimistic about rising home values. The recently released data says many do not expect house prices to fall in the coming months. This makes those seeking a remortgage feel more positive about the upcoming summer selling season as well. Overall, confidence in the property market is increasing as the weeks creep by and the warm months of summer approach.
Homeowners are encouraged to shop for a remortgage long before their current mortgage deal ends. Otherwise, the homeowner could risk paying too much on their repayments. When the mortgage deal ends if the homeowner does not remortgage, then the lender will move them to their standard variable rate (SVR). With low interest rates, the homeowner might easily accept the move and get comfortable, but that could be risky.
In the shadow of a possible interest rate hike by the Bank of England’s Monetary Policy Committee (MPC), landlords have turned out in great numbers to remortgage. According to a recent report, the majority of landlords remortgaging are looking for a lower interest rate. There have been fewer buy to let remortgage products available for property investors, but there are plenty enough for those looking to make a smart financial decision to pay less in interest than more.
According to several reports recently released, homeowners didn’t sit idly when the warning grew of a possible interest rate hike by the Bank of England’s Monetary Policy Committee (MPC). The forecast of a possible rate increase was pushed off until possibly August or even as late as November when the inflation data revealed the MPC would not have to intervene so quickly. However, during the warnings homeowners turned out to secure remortgages and increased the rate of demand over this same time last year.