12 Dec When did you last think about your mortgage?
What’s at the forefront of your mind at the moment? Is it getting ready for Christmas? The election results? What about remortgaging your home? 🤔 Probably not.
If you haven’t thought about your mortgage for a little while, then now is the time to do so! The number of people remortgaging has soared to a two-year high as homeowners take advantage of lender’s end-of-year price wars to lock into a good deal.A total of 37,769 mortgages were approved for people switching to a new deal in October, 12.7% more than in the same month of last year, according to industry body UK Finance.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “As we head towards the end of the year, and lenders jostle for what business there is out there, there are some incredible deals on the market to attract borrowers.”
There was also an increase in the number of mortgages approved for house purchase, with these rising 3% year-on-year to 46,631, despite the uncertainty caused by the General Election.
Why are more people remortgaging?
The final quarter is traditionally a busy time for remortgaging as banks and building societies try to entice homeowners with competitive deals in a bid to meet their annual lending targets by the end of the year.
This situation not only encourages people who are sitting on their lenders’ standard variable rate to remortgage, but it also means a higher volume of mortgages tend to expire during this period, due to people previously taking out fixed term deals in the run up to the end of the year.
The surge in remortgaging typically helps to offset a more subdued market for lending to people buying a new home, with house-hunters typically putting moving plans on hold until after Christmas.
Who can take advantage of these better end-of-year deals?
End of year competition among lenders is great news for anyone looking to remortgage. If you bought two or more years ago, it might be time for you to check your rate and how long you are tied in for. Halifax is currently offering a two-year fixed rate mortgage of 1.08% for people with a 40% deposit, while NatWest is offering a two-year deal of 1.25% for those with a 25% deposit.
Rates ate only slightly higher for homeowners who want to fix for five years, with Virgin Money offering a deal of 1.46% for people borrowing 65% of their home’s value.
Nationwide, Halifax, NatWest and Royal Bank of Scotland all have five-year fixed rate loans with rates below 1.6%.
What do I do now?
If you’re keen to secure a better deal on your mortgage and save money on your monthly payments, our team of independent mortgage and protection advisors are here to help. We have access to well over 450 lenders and can find the best deal for you.
We offer free, impartial advice – call us now on 0113 2390012 option 3 to book your free appointment.