Homeowners are making the move to remortgage ahead of another expected rise in the Bank of England base rate, according to new figures.
UK Finance, the trade body for lenders, revealed that in London alone there were 14,500 remortgages in the last quarter of 2017 alone with 56,800 across the whole year – the highest annual figure in eight years.
Across the UK, December showed an increase of 7.4 percent in remortgage activity on the same month a year earlier.
This week estate agents Savills said a 1 percent rise in interest rates would add £10 billion to the UK’s mortgage debt, adding an extra £930 per year to the average mortgage.
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Knock-on effect on repayments
Other homeowners and buyers are looking to long-term fixed rate mortgages, wary of a potential hike in the mortgage rate as a knock-on effect of any move by the Bank of England.
The Bank of England raised its base rate by 0.25 percent in November to 0.5 percent, the first rise in a decade. In February, its policymakers unanimously agreed to keep the rate at its current level but indicated that another rise is required and could come as early as May.
That gives homeowners only a short time to arrange a remortgage that could help fix their payments at the lowest mortgage rate for a longer period.
Homeward Legal can help sort your remortgage deal out. All the solicitors on our nationwide panel are experienced in dealing with the remortgaging process, particularly understanding that speed is essential when it comes to completing the transaction.
We help thousands of homeowners remortgage every year, taking care of all the legal work required efficiently and professionally. Call our expert team now on 0800 038 6699 to find out how we can help you. Or get a no-obligation quote here.