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It’s not too late to remortgage, borrowers assured

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While mortgage rates have started to rise, borrowers can still make big savings by remortgaging from their current deal.

Mortgage rates have started to increase from their record lows, with many lenders now withdrawing some of their cheapest rates.

However, borrowers have not left it too late to grab a good deal according to Brian Murphy, head of lending at brokers Mortgage Advice Bureau.

He told Your Mortgage that many borrowers remained stuck on high standard variable rates and could make big savings by switching to a new deal.

“Many borrowers can benefit greatly by remortgaging, with those languishing on standard variable rates paying in the region of 4.5%,” he said.

“With fixed rates for five year products at or around 2.25% at 60% LTV and around 2.65% at 80% significant savings can be made.”

He said rates were likely to rise in future, so borrowers should look to switch loans sooner rather than later.

“For those who only want a short-term fix, rates are even lower (starting at around 1.40% for 60% LTV and 1.60% at 80% LTV for 2 year products),” Murphy added.

“As we move into the autumn period I think we can still expect to see significant lender competition, particularly as a number of lenders are behind their targeted volume and market share levels. We may well have reached the bottom of the interest rate curve, but even if rates do edge up borrowers can still benefit greatly from the opportunities that remortgaging offers.”

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