Remortgaging Hitting Highest Level
Remortgaging hit its highest level in over a decade in July 2018
New homeowner remortgages increased by 23.1% in July from the same month in 2017.
The remortgage market continues to grow as clients see the benefit of reviewing the market rather than increasing their payments by sitting on the lender’s standard variable rate.
Two year fixed mortgage rates stood at 2.5% over the last month following the Bank of England’s decision to hold rates after the hike in August.
Two year mortgage rates have climbed only slightly compared to October 2017 according to the latest figures released by Money Facts.
Rates have increased by 0.2% in the last 12 months, up from 2.33% in the same period last year. However, the report found that the average two year mortgage rates have been flat in the last five business days.
The Bank of England recently maintained the base rate at 0.75% for the third month in a row after raising it in August. However, lenders are desperate for business as they have to meet their lending targets. They want to encourage their clients to get cheap deals because it is more likely the clients will decide to renew them. In fact, many lenders have decreased their rates since the base rate rise, making the mortgage market still very attractive.
With Brexit looming, many clients are looking to fix their rates now and this has seen a rise in five year fixes across the market.