It may be time to remortgage, says expert

Date:Tuesday 8th June 2010
Author: Max Freedman

A mortgage expert from John Charcol has suggested that some homeowners may wish to think about remortgaging their property.

Ray Boulger, a spokesperson for the firm, identified those people who are paying a standard variable rate (SVR) of 3.5 per cent or above on an 85 per cent or lower loan-to-value arrangement as potentially benefiting from such a move.

In his view, there are several factors suggesting a remortgage could work for some borrowers, such as the falling cost of fixed-rate deals, the increasing interest rates of SVRs and the recovery of house prices.

"Probably the most important consideration when remortgaging is whether to switch to another variable rate, in all probability a tracker or a fixed rate," said Mr Boulger.

Last week, he lauded the Accord 5.54 per cent ten-year fixed-rate offset mortgage, which he suggested may appeal to many people due to the uncertainty in the mortgage market.