Interest rates in the UK could rise as soon as August with Mark Carney, the governor of the Bank of England, hinting that the base rate could rise from 0.5 percent to 0.75 percent. The last rate rise was in November 2017, the first increase in almost a decade.
While the base rate remains historically low, the knock-on effect of any increase would immediately be felt in mortgage interest rates. That explains why remortgaging continues to rise.
The latest figures from UK Finance, the trade body for lenders, shows that the number of people remortgaging in May was up 18 percent on a year ago, with 31,748 homeowners switching from one lender to another. The total amount of lending in May for new mortgages and remortgages was £22.2 billion, up 8.8 percent on the same month in 2017.
Taking advantage of competitive market
Eric Leenders, managing director of personal finance at UK Finance, said: “May’s increase in mortgage approvals was driven by strong growth in remortgaging, as a large number of fixed-term mortgages came to an end and homeowners took advantage of a competitive market to shop around for attractive deals.
“Increased efforts by lenders to contact their customers before their current mortgage deal expires have also contributed to this rise.”
Avoid immediate financial pain
As Eric Leenders noted, most homeowners remortgage to take advantage of fixed-rate deals that mean they won’t feel any immediate financial pain if the Bank of Interest does raise its base rate.
Homeward Legal’s nationwide panel of conveyancing solicitors can help with all the legal work required for remortgaging. All of our panel are also on the lenders’ panels, which means there is no restriction in them working on your behalf to complete all the documentation.
Proactive property lawyers on your side
The property lawyers who work with Homeward Legal are also all proactive and pragmatic in their work, aiming to complete your transaction as quickly and efficiently as possible. And with the clock potentially ticking on that base rate rise, you need a conveyancing solicitor who will work quickly to get your remortgaging completed.
Talk to our team now on 0800 038 6699. We’re available seven days a week. Or get an instant, no-obligation quote. We offer a fixed-fee guarantee with no hidden extras and a no completion, no fee offer.