Homeowners race to get homes remortgaged
11/08/2015
A large number of homeowners are racing to get their homes remortgaged before the base interest rate rises.
Figures from the Council of Mortgage Lenders showed that remortgaging jumped by 30% in June, and was at its highest level since September 2013. During June 31,600 households changed their mortgage deals, compared with 24,300 in May. Price comparison website Comparethemarket also claimed it had said it had seen a 23% spike in remortgage queries between June and July.
Many homeowners not on fixed deals may see their payments rise when the base interest rate goes up, so have taken precautions to change their mortgage plan. The Bank of England (BoE) has claimed that interest rates could increase as soon as December this year. The last time interest rates increased was eight years ago in July 2007, which means up to one million homeowners have never experienced an interest rate rise, according to the Money Advice Trust.
Paul Smee, the director general of the CML, said:
"Notable this month is the uptick in remortgage activity among home-owners, perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates.
"It is likely that people are now beginning to feel a rate rise is a realistic prospect, and not just a distant theoretical possibility."
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Is mortgage fraud on the increase?
Last week's revelation that Bradford & Bingley lost £196 million as a consequence of buy to let fraud and bad debt has prompted a number of questions regarding mortgage fraud in the UK. It appears that mortgage fraud has been increasing over the last couple of years although is this the real picture? The truth is that mortgage fraud has been on the increase for many years now due to intense co...
Read MoreUK banks fail to pass or todays interest rate cut
Today has seen the reopening of hostilities between the UK government and the UK financial sector with news that many of the U.K.'s leading banks are not prepared to pass on today's full 1% base rate cut. The move seems to fly in the face of recent comments from the UK government which indicated that an understanding had been reached but this does not seem to be the case.
Aside from...
Mortgage approvals rise in October
Recent figures relating to the UK mortgage market continue to cause confusion and scepticism in equal measures with October seeing a 5% increase in mortgage lending compared to September. The situation is complicated by a number of issues which include the fact that the stamp duty holiday is due to end, the winter period is traditionally a quiet time for the mortgage market and there are signs and...
Read MoreDo tracker mortgages really work?
While the idea of mortgage tracker funds is to basically track the level of interest rates in the UK, do they always deliver what they promise and are they as readily available now as they were before?
Tracker mortgages have become very hot news across the UK as interest rates continue to come under pressure after the last 0.5 percent cut to 4.5 percent. There is even talk that rat...
How can the Bank of England increase mortgage liquidity?
Only 24 hours ago it seemed certain that the Bank of England was to introduce a fee of around 0.25% on funds held on behalf of UK banks with the Bank of England. However, today Mervyn King has denied these allegations and confirmed there are no immediate plans to change the interest received on money held with the Bank of England on behalf of UK banks. So how can the Bank of England now increase l...
Read More