Remortgage with Low Fixed Rate Now Possible before Hints of Rate Increase Begin
Strong demand for remortgage in the months of March and April indicate more home owners are taking advantage of a lending tool with many benefits. In the month of April alone, an increase year on year of more than 44% in remortgage points to a higher profile for a mortgage loan which has not been this popular in several years. Demand has increased for remortgage to a high in January not seen since 2009. During that first month of the year, more than 50,000 remortgages were obtained.
A large number of two year deals were coming to an end in the first part of this year. This is one of the main reasons remortgage has taken off in recent months. Another reason is historic low interest rates.
The Bank of England has also hinted at the possibility of a hike in the month of August possibly. Housing experts at this time are urging those in the market for remortgage to act soon in order to avoid a possible rush taking place in a few weeks. Lenders are only able to process so many remortgage applications per week. What once was a lengthy process has now been streamlined, but still takes time.
After an interest rate hike was delayed in the month of May this year, home owners were given more time to act and apply for a remortgage. This time is quite valuable now that a potential rate rise could take place in the month of August. Experts see this time as an opportunity to compare deals and get needed documentation in order.