You might, like most UK homeowners, feel bewildered by the future outcome of Brexit now.
But if you’re in the market for a bargain remortgaging deal, there is one positive consequence to all the unpredictability about Britain’s future relationship with the EU.
And that is that mortgage lenders are at sixes and sevens too…
The result of this? Mortgage providers are working much harder to maintain their business volumes. They’re offering better remortgaging deals to entice new borrowers onto their books.
Mortgage lenders have lending targets to meet by the end of this financial year. This means that at the moment they’re offering some excellent value remortgaging products.
“Those looking to move house or remortgage this winter can bag themselves a bargain mortgage deal,” explains finance expert Will Kirkman. Lenders are holding down or reducing rates and offering limited time incentives.
Plenty of Bargain Remortgaging Deals on Offer
The abundance of low-cost remortgaging deals currently up for grabs is down to several factors.
The first is Brexit volatility. The second is fears about the plunge in housing prices we’re seeing.
November saw the largest drop in prices since 2012. Rightmove said the average price of property coming to the market was down by 1.7%, or £5,222, on the month alone.
The biggest falls were in London. There the typical asking price fell by £10,793 (a fall of 1.7%) and in the south east of England, where prices were down £8,647 (2.1%).
This has had a knock-on effect on homebuyer confidence. This is clear from latest figures from the Intermediary Mortgage Lenders Association (IMLA), which represents mortgage brokers. They show the largest drop in business volumes in more than two years.
But, note, this is for new mortgages only. RICS research indicates that it is new buyer enquiries that are at an eight-month low. With the Brexit negotiations remaining so complex and uncertain, buyers are taking a wait-and-see approach before plunging into a property purchase.
Now is a Good Time to Grab a Remortgage Deal Bargain
For those who are looking to remortgage however, the timing has rarely been better.
“Conversely, remortgage activity continues to remain strong. Quarterly figures for residential remortgages were up more than 6%. Annual remortgage activity for both residential and BTL loans grew compared with Q3 2017,” says the IMLA.
If you’re someone who has equity in your home and are in a position to remortgage, there may be big savings to be had by moving to a better deal.
The market slowdown has contributed to average mortgage rates changing very little since the Bank of England raised interest rates in August. In some cases, remortgaging deals are actually cheaper now than they were in July before the rate rise.
This goes for all types of remortgaging products. That’s trackers, discounted, short-term and long-term fixes.
All this has led to lenders having to be more imaginative to attract new homeowners interested in remortgaging.
Some are offering, for example, not only low rates, but also free valuations, legal fees or cashback.
We would advise you to always check and factor in the fees that the lenders are applying. But there are some very strong remortgaging deals on offer.
How long they will be around for is anyone’s guess. Rather like the outcome of Brexit!
If you need help in finding the right remortgaging product for you, we’ll be happy to help you here.
Last, but not least, The entire MAS team wishes you, your family and friends a very Merry Christmas.