Don’t delay switching as we enter a two-month remortgage frenzy
Remortgaging rocketed in the summer as borrowers took advantage of low rates, but it was just the start of a switching boom.
And that means you shouldn’t hold off remortgaging if your current deal is due to end soon.
There could be a tsunami of switching in the coming two months as a massive £35bn-worth of borrowing is up for remortgaging by the end of October.
According to data from consumer data company CACI, more than £35bn worth of mortgages are due to mature in September and October, 70% of which came from mortgage advisers, prompting their clients to look for new deals instead of reverting to their lender’s Standard Variable Rate.
Remortgaging activity rose 60% over the Summer from June to August compared to last year, with an even bigger spike in August, which saw a 68% rise in applications.
David Robinson, national intermediary sales manager at Accord, part of Yorkshire Building Society, said: “It’s positive that borrowers are taking action before their deal comes to an end. Many could see a significant reduction in their monthly repayments thanks to a favourable shift in house prices and interest rates.
“The surge is also great news for mortgage advisers, who have an important role to play advising their clients on the best remortgage deal for them.”
CACI research, passed exclusively to sister title Mortgage Solutions, shows that £133.1bn of mortgages are maturing in the second half of the year, with another £110bn in the first half of 2018 and even more at just over £133bn in the second half of next year.