Last month, the Bank of England cut its base rate to an all-time low of 0.1% (following an initial emergency cut to 0.25%) in preparation for the economical impact that the global coronavirus pandemic would have.
This low base rate has led to a continued fall in average mortgage rates across the UK.
According to research by Moneyfacts.co.uk, the average two year fixed mortgage rate has fallen by 0.06%, while the average five year fixed mortgage rate has fallen by 0.05%. Additionally, the average standard variable rate (SVR) has seen the biggest fall of 0.14%.
The pandemic has caused financial concern for many since it started, from business owners to individuals, so because of these low-priced fixed rate deals, it’s not surprising that remortgagers will be looking to capitalise on these cheap deals.
The remortgaging rush
Some mortgage brokers have seen remortgage applications rise by as much as 100% in the last two weeks as those in the UK rush to get a better deal. The term ‘remortgage’ has also risen by as staggering 60% as more people try to find ways to improve their financial outlook.
For those homeowners that are currently on the SVR who are able to remortgage onto a fixed deal, they should consider doing so and would see a huge financial benefit, because even though the average SVR has dropped the most, it’s still much higher than the average two or five year fixed rate.
Help with remortgaging
As mortgage brokers in Manchester, we’ve been keeping up to date with all new developments and if you’re thinking about remortgaging, we expect things to get extremely busy over the next couple of months, which the stats above confirm.
Additionally, many lenders have withdrawn various mortgage desks from the market in response to the COVID-19 pandemic. Research by Moneyfacts.co.uk has found that as many as 1,585 mortgage products have been withdrawn from the market. With that in mind, those looking to remortgage may find it difficult.
But there is hope! Even though things may take a little more time to process, we can help you find the best remortgage deal on the market to help lower your outgoings, consolidate your debts and raise any capital you need. If you’re going through some financial worries we’ll be there to help you through this difficult time and we can use our expertise to get you a better deal.
If you’re thinking about remortgaging contact us at TaylorMade Finance.
