Keeping doctors and dentists informed with the latest mortgage news and rates.
The current base rate still stands at the all time low of 0.5%. Talk of a rate increase for 2016 still looms in the financial market, and subsequently this is encouraging anyone who hasn’t already remortgaged, and who could benefit from a lower rate, to now investigate their options, before they miss out.
Have you considered a remortgage?
This does not constitute advice and advice should be sought in all instances before acting on it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
Analysis of last 3 months
July 2015 has been reported by the British Bankers Association (BBA) as the highest month of lending since 2009, when the financial crisis began. Over 46,000 mortgages were approved in July alone, an increase of 11% from the previous July and 3% on the previous month.
Remortgages were also the highest in four years according to the official BBA figures.
Whilst August 2015 didn’t have as high levels of approvals as July 2015, mortgage lending still exceeded £20billion, according to Council of Mortgage Lenders (CML), 12% more than August 2014.
Looking ahead – next 3 months
Industry experts predict mortgage lending to continue at a steady pace in the coming months, spurred by homeowners looking for a last minute deal before any rate rise comes to fruition.
Some lenders have already started to notch up their fixed rate deals in an attempt to even out the gaps of any potential increase but there are still others that are falling.
The general consensus by economists though, is that there is little point in waiting to secure any significantly lower rates, as they are already at pretty much rock bottom.
What could you do if you remortgaged?
With low rates of interest and rising property prices, homeowners with equity in their properties are now able to be creative with their property wealth, some opting to take out cash to reinvest either in pensions or in other property, perhaps for their children or as a buy-to-let to support retirement.
Others are extending the term of their loan, or borrowing more money, to make home improvements or to buy a new car, for example, because their loan-to-value (LTV) has changed since they first had the mortgage and they are now able to take advantage of this.
Borrowers on an interest-only mortgage may now in fact be able to remortgage onto a repayment term and still afford the monthly repayments.
Of course, many are simply securing the low rate over a long term to save money on the monthly repayments.
Examples of the latest interest rates – ACT NOW
- 2 Year @ 1.39%
- 3 Year @ 1.89%
- 5 Year @ 2.33%
- 10 Year @ 3.24%
Offset Products
- 2 Year Fixed @ 1.69%
Smaller Deposit – Purchase/Remortgage
- 90% 2 Year @ 2.76%
- 85% 2 Year @ 1.95%
Buy-to-let arrangements for Purchase/Remortgage
- 75% 2 Year fixed @ 2.54%
The average lender’s Standard Variable Rate is now 4.48% (BOE August 2015)
The above does not constitute advice and advice should be sought in all instances before acting on it
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If you would like us to undertake a review of your current mortgage deal or you are thinking of purchasing in the near future and require funding, please contact Chris for a free, no obligation appraisal.