Time to remortgage, broker warns

Adam Williams
Written By:
Adam Williams

A mortgage broker has urged homeowners thinking about remortgaging to act soon in order to get the best rates.

Remortgage levels have risen to their highest level since the financial crisis, with rates having been at historic lows for much of the summer.

A number of mortgage lenders have started to increase rates ahead of an expected base rate rise at the start of 2016.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said that mortgage lenders were also looking at other factors in the worldwide economy.

“The situation is changing, with the markets factoring in an interest rate rise next year. Some lenders have re-priced their fixed rates upwards on the back of higher swap rates, which is persuading more borrowers to remortgage before the best deals disappear,” he told Your Mortgage.

“As well as fear of a rate rise providing motivation for remortgaging, an added attraction is that fixes are still exceptionally low.

Harris told borrowers to act soon before the top deals disappear from the market.

“Borrowers considering remortgaging are unlikely to find a better time to do so. Nobody knows exactly when rates will rise and trying to hang on for an even cheaper fix could turn out to be a mug’s game.

“There are some great deals available – if you fix now, you are unlikely to regret your decision.”