Last Half of Year Expected to See Strong Remortgage Activity

Last Half of Year Expected to See Strong Remortgage Activity

The uncertainty with Brexit could be soon coming to a conclusion. What is expected next from the housing market in many opinions is positive for some sectors, especially remortgage. The key to this enthusiasm lies in what took place two years ago for those who purchased a residence and obtained a mortgage loan for that property. The base rate at that time was 0.25% and had not seen an increase for many years. What property buyers found as they applied for loans was attractive two year fixed deals with low interest rates.

That was the year 2017. This is the year 2019 and two years later. Those fixed deals have now matured or will mature later this year causing many house owners searching for their strategy going forward. There are two main options to moving ahead.

The first option is allowing the loan to transition to the lender SVR. According to many housing experts, this would be a painful decision. Since there have been two increases in the base rate in the last two years, this new SVR interest rate could potentially be double the rate found in the year 2017. The monthly mortgage payment could at that time explode and immediately become a point of stress.

The second option is moving to another mortgage package through remortgage. Instead of going with an increased interest rate of the lender SVR, remortgage might at least offer a lateral move with the same interest rate, and potentially lower rate.

Housing experts see later this year as possibly a time of remortgage boom. Brexit could be in the rear view mirror, lender competition will be at a high level, and the market overall will likely be leaning toward borrowers, according to housing specialists.

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