Rates are rising – remortgage as soon as possible.
The trend over the last three months indicates that remortgage rates are definitely increasing.
This is in spite of the fact that there was no rise in the base rate as predicted. However, mortgage and remortgage rates are influenced by other factors apart from the base rate, including:
- inflation
- swap rates
- removal of products leading to a reduction in the level of choice
Swap rates relate to how much it costs lenders to fund their mortgage ranges and the cost of this reached its highest level in April this year since August 2015.
Overall, rates have been reducing over the last decade to reach historically low levels. However, the lows of the last two years in particular appear to have gone as far as they can go and consecutive rate rises are now being seen.
2 and 5 year fixed rate remortgages have proved to be extremely popular since last November. The date is significant because it was when the Bank of England increased the base rate for the first time in ten years. Borrowers then rushed to remortgage and the removal of certain products may be due to them being oversubscribed.
What does this mean for you if you have a deal coming to an end at some point this year or you are paying your lender’s SVR?
Deal Direct’s advice would be to begin your research as soon as possible before more products disappear and further increases are applied. And we can help you with that.
We have helped many UK home-owners to refinance and switch deals, but don’t just take our word for it read what our satisfied clients say about the service we provide.
Find your next mortgage with Deal Direct. Call us on 0800 048 8828.
