Homeowners looking to re-mortgage have never had it so good

21st September 2015


Homeowners looking to re-mortgage are not only enjoying the benefits of more products on the market but they are also profiting from significantly lower rates according to Moneyfacts.co.uk.

But those considering remortgaging to a lower-cost deal should act now to avoid disappointment as the spate of attractive deals are unlikely to be around forever.

With remortgage activity surging to its highest level in four-years, according to the British Bankers Association, it looks as though there has been no better time to take advantage of the deals on offer.

The table below highlights how the number of products available to remortgage customers on the market has increased while the rates charged have simultaneously fallen.

Five years ago

Two years ago

A year ago

6 months ago


Total number of remortgage products 1,676 2,208 2,085 2,269 2,402
Two-year remortgage average fixed rate 4.39% 3.49% 3.45% 2.96% 2.57%
Five-year remortgage average fixed rate 5.31% 3.76% 4.01% 3.43% 3.11%
Moneyfacts.co.uk Compiled: 21.9.15

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “It seems that now is the perfect time to remortgage; growing product numbers and falling rates have created a perfect storm in the remortgage market, and borrowers are rushing to take advantage.

“Some rates have witnessed particularly dramatic reductions since the beginning of this year: the average two-year fixed mortgage for remortgage customers has fallen by an astonishing 0.39% in just six months, for example.”

Nelson highlighted that with the average Standard Variable Rate (SVR) standing at 4.82% today, it is unsurprising that a greater number of consumers are remortgaging to a better deal. By switching to the average two-year fixed rate, borrowers could potentially save £2,196.00 in just one year on a £150,000 mortgage over a 25-year term.

She added: “Many deals are also now offering the option to make overpayments, which if taken advantage of, can benefit remortgage customers even more. Wise remortgagors could use the money saved from changing deals to overpay their mortgage, thereby reducing the length of their mortgage term.

“However, with the Mortgage Market Review now firmly entrenched in bank policy, some remortgage customers will be shocked by the changes in the mortgage process. But as long as remortgagors get their finances in order, there is nothing to worry about.”

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