You are here: Home - Remortgage -

Remortgagors turn to five-year deals

0
Written by: John Fitzsimons
06/06/2018
April saw a sharp jump in demand for five-year fixed rate remortgage deals, according to the latest remortgage report from property services giant LMS, with these long-term deals now accounting for just shy of half the market.
Remortgagors turn to five-year deals

Around 47% of remortgages are now over a five-year fixed term, the highest level in six months. This represents a significant increase from March, when five-year deals accounted for little more than a third (36%) of the remortgage market.

Demand for five-year deals has also jumped on an annual basis, from 34% last April.

LMS suggested the growth in popularity is a result of keen pricing, with rates on five-year products remaining largely flat while two-year deals have seen costs rise.

Nick Chadbourne, chief executive of LMS, said: “Five-year fixed rate remortgages will always be popular when borrowers are seeking financial security. Many consumers are now opting for these deals to ensure they have certainty and stability through the potential economic and political upheaval of the next few years.”

The hunt for financial security was in part prompted by expectations of a base rate rise which did not materialise. Perhaps as a result, the proportion of remortgagors who expect a rise this year has dropped to 77%, the lowest level seen in seven months.

Nevertheless, this represents a sharp increase from the number of borrowers expecting a rate rise within 12 months from this time last year, when just 46% of respondents forecast a rise.

The report also found that the average remortgage amount has hit a record high of £175,000. This is up by 9% from March and a 10% rise year-on-year.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Save money now!

See how much you could potentially save by remortgaging to a different product

Your Mortgage Guides

Your Mortgage Award Winners 2017-2018

Download our guide to the best mortgage lenders in the UK

Read More >

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
  • RT @esurv: Mortgage borrowers with small deposits account for almost a quarter of the UK mortgage market at 23.4%. Read more on our latest…
  • Mortgage borrowers with small deposits account for almost a quarter of the UK mortgage market at 23.4%. Read more o… https://t.co/YkfgNmSkcu
  • RT @Your_Mortgage: North East records strongest house price growth in England and Wales - https://t.co/epO6oNypH0
Read previous post:
2222451-money-houses_social_watermark
Top tips for downsizing

With more and more homeowners moving to smaller properties later in life, the National Association of Estate Agents offers the...

Close