There is growing uncertainty aboutthe base rates around the property markets in the UK. While it is not clear how far they will go up, one thing is for sure that they will not remain that way forever. This is why many people are looking for a long-term, remortgage deals in an effort to secure their finances in the future.
In July of 2017, the market experienced the highest level of long-term remortgage deals with over 35 percent of the remortgagers going for a five-year deal. This is an increase ofthe 7 percent in the previous period. This is because many homeowners are keen to get guarantees for their mortgage repayment. Therefore, they do not need to worry about the volatile mortgage market in the near future.
A few of the mortgage deals have an effect of lowering the monthly mortgage deals. Less than 20 percent of the remortgage deals have actually brought down the monthly repayments. Therefore, it shows that the focus is onthe long-term savings from fixed interest mortgage.
Only about 2 percent of the remortgagorsbelieve that the interest rates might come down in the near future. The rest of them feel that the rates will keep climbing up steadily in the coming days. Over the last year, people were remortgaging in order to bring down their monthly repayments and get an opening to save some cash.
The market has experienced relative calmness in the recent years with many taking up a mortgage, as many house units were affordable. There are several lenders in the market,and they are competing with each other for the available clients. It is good to take advantage of this period and get a better deal before the rates start climbing once more.
One of the lenders in the market, Yorkshire Building Society experienced a whopping 68 percent year-on-year increase in remortgage application in the August of 2017. This comes as most a loans approach the mortgage maturity period in the next five years. Many other mortgage deals are coming to an end in September and October which is also creating the rise in the remortgaging activity.
People whose fixed mortgage deal is almost coming to an end especially if they are on standard variable rate, it is the best season for them to look at the remortgaging options available. One should consult a professional financial consultant before making the switch. Especially now when Briton leaves the EU its even harder to get mortgage and many lending institutions are very worry to lend money. Further, the market gets really tight and not many people are selling their properties. This uncertainty may have a big impact on how banks lend money in future.
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