Time to consider a fixed rate remortgage? | Equity Finance

Wednesday 2nd February 2010

by Shaun Vickery, Mortgage Advisor and Director of Equity Finance

According to Santander Mortgage's Remo Index, which monitors trends on a monthly basis, over 880,000 UK homeowners on tracker or fixed rate mortgages could be looking to remortgage in the next six months.
This equates to some 4,848 potential remortgages each day over the next six months.

Given the present low rates you might be asking yourself why that would be the case.

The research reveals that those who are coming to the end of their mortgage deals in the next six months are increasingly disinclined to choose a tracker deal with expectations of Bank of England bases rate rises at some point this year. Of those homeowners due to remortgage in the next six months, only 13 per cent say they will opt for a tracker deal, compared to 33 per cent just two months ago.

According to Santander Mortgages the number of those likely to opt for a fixed rate deal has increased from 20 per cent to 23 per cent over the last month. Half of these people (50 per cent) favour a two year fix rather than a three or fove year deal.

It is just possible that now is the right time to opt for the security of a fixed rate deal, particularly given the recent news that the inflation figure was higher than expected. If that trend continues, base rate increases may have to follow to keep it under control.

Please feel free to discuss your individual requirements with a member of our team on (01244 659000). Alternatively you can use our live chat facility or email me on shaunv@equity-online.co.uk

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