Will you take advantage of the Autumn remortgage boom?
Borrowers could save up to £255 a month when the biggest period of maturing mortgage in five years begins in September, said Yorkshire Building Society.
Over £35bn-worth of mortgages are set to mature this September and October, according to data from CACI – and this is the biggest number of deals up for remortgaging over a two-month period since 2012.
Big savings possible
Analysis by the mutual found that homeowners looking to remortgage could see their monthly repayments fall, as a result of both reduced mortgage rates and increased house prices impacting their mortgage loan-to-value (LTV).
For example, a London homeowner who initially borrowed 90% of a £250,000 property in July 2015 at a market average rate of 3.60% could now benefit from a reduced LTV of 72% when taking out a mortgage in July 2017, after house prices in the area increased by 14.9% during the two-year period.
Switching to the Yorkshire’s current two-year fix of 1.14% for borrowers with a 75% LTV could save them £255 a month in repayments, a total of more than £3,000 a year.
Charles Mungroo, mortgage manager at Yorkshire Building Society, said: “With such a large proportion of mortgage deals coming to an end in September and October we expect to see a surge in remortgages soon.
“Homeowners should be planning ahead long before their fixed period ends to ensure they get the best option. Longer term fixes may appeal to borrowers who want to keep their monthly repayments as low as possible whilst also being able to budget for the next five years.
“All our mortgage offers are valid for six months so customers have reassurance that they’ve secured a great rate but they also have some breathing space if they have other priorities at the moment, such as a summer holiday.”