Recent analysis shows that remortgage applications have risen by more than a quarter between March and April. This is largely down to the multiple base rate rises announced by The Bank of England throughout 2022 and the response from lenders to raise rates accordingly. Many consumers are now looking to ‘lock-in’ the current available rates in a long-term fixed mortgage ahead of any more potential rate increases. Is this the right thing to do? We look at how base rate rises and the cost-of-living crisis could persuade you to follow suit.
Over 50% of borrowers took out a five-year fixed rate product. With rates on the rise, it’s essential you take the time to review your current mortgage. If you’re currently on a variable rate plan or your fixed rate term is coming to an end, it’s the perfect time to lock in a new long term fixed rate mortgage before rates potentially get significantly higher in the coming months.
As the economy tries to recover from the pandemic and combat inflation, rates are predicted to rise further. Acting quickly could save you money on your monthly repayments.
There are some who won’t need to worry about a higher cost of living and are in a slightly more comfortable position financially. Well, remortgaging can still offer benefits to you too! As summer approaches, maybe you’re considering some home improvements? A conservatory? Maybe a home office? Whatever you may be considering, home improvements can be expensive. Remortgaging can make lump sums available to you to finance such projects so that you don’t have to save and could get the work done while the summer weather is (hopefully) warm and dry.
Remortgaging isn’t for everyone, but it does currently offer unique opportunities to take advantage of. If you just want to secure lower mortgage rates for the coming years or maybe you want to add value to your property by doing some home improvements – whatever the reason, remortgaging could be the answer.
If you’d like to discuss the options available to you, contact us today.