Remortgaging on the rise again

After the Bank of England Base rate of interest dropped to just 0.5% 19 months ago, most borrowers with a variable rate on their mortgages were satisfied with their existing lender and  didn’t shop around for better loan deals.

Consequently, remortgaging was not popular among borrowers over the past year and a half or so and has fallen to a record low.

However, recent figures from John Charcoal have demonstrated a substantial rise in remortgaging activity as many borrowers have been shopping around for a new lender to get a cheaper deal.

According to these figures, the number of borrowers willing to switch lenders in the process of a mortgage increased by 42% over the course of October alone.

As competition starts alivening the market, a number of loan providers are increasing their SVR on their existing loan deals, and switching lenders is suddenly becoming more popular among borrowers than it was a year ago.

Unhoped-for growth in the UK economy and high levels of inflation have brough up issues about interest rates on loans going up in the nearest future and this has impelled many borrowers to switch to a fixed rate mortgage to be better off later.

Drew Wotherspoon of John Charcoal agrees that now it’s the right time to switch mortgages since there are a plenty of great deals available on the UK mortgage market.
 


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