It seems that Britain could be progressing into a season of re-mortgaging as high competition among lenders are lowering mortgage rates. So, is this the time to re-mortgage your property?
According to new figures the number of re-mortgage valuations within the UK have risen to 37% in August, the highest level since 2009. This is as a result of lower interest rates, which have encouraged homeowners to switch to cheaper mortgage deals to save thousands of pounds a year and to fix their borrowing costs at a reduced rate for two or even ten years.
These low rates are a result of The Bank of England lowering interest rates back in August 2016, from 0.50% to 0.25%, a record low since the 2009 financial crisis. This has since resulted in lenders slashing their rates and the competition within the mortgage market heating up.
UK Finance suggests that homeowners should consider re-financing in the upcoming months before interest rates begin to rise, which has been predicted to be in November. Some experts have warned that homeowners should act now to make the most of the cheap deals.
Aside from record low-interest rates encouraging individuals to re-mortgage, here are three additional reasons you may want to consider re-mortgaging your property:
1. To make overpayments or to take payment holidays if your current deal does not allow that.
2. Possess more money for large purchases, property maintenance or additional types of funding.
3. Your current salary has increased, you may want to make greater repayments at a reduced rate.
If you would like to discuss your options regarding re-mortgaging your property, contact us today. We are independent mortgage brokers based within the Neath area. We intend to find you the best re-mortgaging solution and ensure you the best rate. Call us on 01639 262222 or click here to send us an email.
**Please be aware that your property may be repossessed if you fail to keep up with repayments on your mortgage.