Are you one of the 150,000 homeowners who could save money on their mortgage in the next month?
Posted on 20 September 2017 by
An estimated 150,000 homeowners a month will get the chance to save money on their monthly mortgage payment this autumn as a record number of two and five-year fixed rate deals come to an end.
With most borrowers getting the change to save at least £125* a month from their monthly mortgage payment, and those with larger loans being able to save considerably more, there’s never been a better time to speak with a mortgage broker and start comparing the deals available to you. This fact was compounded last week when The Bank of England’s Monetary Policy Committee (MPC), which meets to decide the interest rate in the United Kingdom (known as the Bank of England Base Rate), raised the prospect that interest rates could rise as early as November.
Any upward change in the Base rate would be the first for a decade. Following the announcement the financial markets now suggest that there is a 42% chance of a rate increase in November, up from just 18% a week ago, while the odds on a rise in December are now 54%.
If you’re looking to remortgage in the coming months, now is the time to act! Here we look at the 5 reasons home owners, who are looking to remortgage in the coming weeks and months can feel cheerful this autumn!
1. Competition in the mortgage market is fierce!
There is currently a massive amount of competition in the mortgage market as lenders jostle to make themselves an attractive option for customers looking to remortgage. Why is this you might ask? The simple answer is that home moves are in decline, as people are staying put and remortgaging - they are the ones lenders are trying to woo. To check out who is topping our best buy mortgage charts use our interactive mortgage comparison tool.
2. Lenders have continued to cut rates
While you’ve been away on your summer holidays several lenders have spent the summer reducing their loan rates. The average two-year fixed rate deal in September 2017 is now 2.22%, a drop of 0.01% on last month and a new record low. While for those looking at a longer fix, the average five-year fixed rate deal has also fallen by 0.02% to 2.77%.
3. Application ease
Gone are the days when it was so hard to get a competitively priced new mortgage. New rules that toughened up the mortgage application process in 2014 are bedding in and unexpected rejections are increasingly rare. Recent stats have shown that 9 in 10 applications made through a mortgage brokers resulted in offers. So if you’re coming to the end of a fixed term deal and your finances have changed a mortgage broker can help you find the lender that will approve your mortgage application - fear of rejection should no longer be a reason for over-paying on a standard variable rate.’
4. You can apply early
Even if your mortgage deal isn’t ending for a few months, but you want to take advantage of record low rates, you can apply for a deal right now! Most lenders will keep a mortgage offer open for three months and some will even go as far as six. A mortgage broker can help you apply early, get approved and then ensure your new lender knows the date your current deal ends. Then once your deal does end you’ll automatically be transferred and you should see your monthly mortgage payment fall.
5. Great rates for everyone (regardless of how much equity you own)
Regardless of how much equity you own in your home there lenders want your business and there are good loan rates available across all LTVs (Loan to Value) on offer. Our new mortgage comparison tool you can let you compare deals based on your home’s value and mortgage size. To compare the best remortgage deals use our online tool.
Call our expert now! We can help you remortgage or switch deals with your existing lender!
If you’re mortgage deal is coming to an end our experts can help your compare deals from your existing lender to 1000s of deals from across the mortgage market. Regardless of whether changing lender, or sticking with your existing provider our experts can help you find and apply for your next mortgage deal and potentially help you save money this autumn
To speak with our experts call us now: 0344 346 3672 - or submit an enquiry here.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.