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Mortgage price war increases remortgage rates


One in six homeowners are considering remortgaging over the next six months thanks to the ongoing mortgage price war driving down rates.

At the moment, homeowners who have remortaged are making average saving of £99 a month, or £1,188 a year. This is thanks to the on-going mortgage price wars cut rates, according to Nottingham Building Society.

Figures from The Council of Mortgage Lenders show that remortgaging increased 15% month on month and industry experts are expecting a surge in remortgaging in response to recent rate cuts, which have seen five-year fixed rates drop below 2%.

Fixed rate deals are the most popular, as three quarters of people who are considering remortgaging would choose this option. Just 7% of people would choose tracker rates, 4% would consider discount deals and 7% say they would choose a standard variable rate.

Ian Gibbons, Senior Mortgage Broking Manager, Nottingham Mortgage Services, said:

“The mortgage price war is interesting to existing homeowners who are keen to take advantage of the record low rates.

“With interest rates expected to rise in the coming years then now could well be the right time for many to consider whether there are savings to be had.

“Potentially savings are higher than the average £99 a month people are looking for. Someone with a £150,000 mortgage who moved from a deal at 4% to one at 2% could be around £3,000 a year better off.

“However, to secure the best remortgage deal it is important to look at more than the base rate. You need to search the whole market and to be aware of the product fees that may be charged. A great rate won’t save you much if you have to pay a high fee.”

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