More people opting to stay put and remortgage rather than buy new.
The most recent market statistics point to more people opting to stay put and remortgage rather than buy a new property and move.
There could be several reasons for this but the main culprit is widely accepted to be the Brexit-no-deal issue. Other influences include:
- the lack of housing stock
- the threat of interest rates rising
While these factors may hinder new sales, they could be interpreted as good news for existing homeowners. In fact, the MPC decided to hold the key base rate at its current level of 0.75% but has not ruled out the possibility of the rate rising to 1.5% in the next three years.
Mortgage lenders are in a continuous process of reviewing their ranges and adjusting pricing, but their efforts to stimulate new purchases doesn’t appear to be having the desired effect. Consequently, they are turning their attention to where the market is thriving, and this is in the remortgage sector.
As a homeowner, this is excellent news for you. If Mark Carney’s prediction about the key base rate proves to be correct, then now would be the wisest time to remortgage. While average interest rates are a little higher than they were this time last year, they are still incredibly low.
Therefore, the advice would be not to take a wait-and-see approach.
Remortgage as soon as possible or face higher rates and pay more for your property. Locking yourself into a fixed rate deal now not only means the possibility of saving money but also creating a protective umbrella against the storm of uncertainty Brexit seems to be whipping up.
Your situation will be individual to you, however, so why not discuss your most suitable options with independent UK mortgage broker, Deal Direct?