Remortgaging market 'may return'

Date:Thursday 4th February 2010
Author: Max Freedman

The number of people looking to remortgage their properties may increase as homeowners look for a good deal, it has been suggested.

As the Bank of England has announced that it is to keep the base rate at 0.5 per cent, John Charcol has stated that it believes some consumers may start to look for a better value product.

Ray Boulger, spokesperson for the independent mortgage adviser, said that for anyone with a mortgage that has a rate of 3.5 per cent or above and 20 per cent equity in their property, now could be the ideal time to move.

Remortgaging fell throughout 2009, but he thinks that as several lenders have announced increases in their standard variable rates since the beginning of the year, it could be financially beneficial to move to a new mortgage.

These products have seen an increase in popularity lately, with four out of five mortgages arranged by John Charcol in December having variable rates.

"With interest rates likely to remain low for some time, we continue to recommend trackers to most clients," Mr Boulger concluded.