In December last year 95% of people who sought to remortgage their homes did so with a fixed rate product, and of those 45% were fixed for 5 years.
People remortgage their houses for all sorts of reasons, often to reduce the overall monthly mortgage payments, but also to raise capital for other reasons, or to consolidate more expensive short term debts.
If you are one of the nearly 53000 people who remortgaged their property in December you might have chosen the 5 year fixed rate because it offers you the guarantee of knowing exactly what you will be repaying every month – quite an appealing option given the levels of uncertainty the UK has been going through recently.
Figures released by LMS (the UK’s pre-eminent provider of conveyancing panel management services) last month show that the actual number of people remortgaging their properties has increased in the previous 12 months from 52251 in December 2018 to 52938 in December 2019.
The number of people seeking the security of a fixed-rate mortgage is perhaps an indication of the general feeling right now of the market conditions. We might be experiencing something of a “Boris Bounce” at the moment, but nobody knows what’s going to happen in the next 5 years when the effects of Brexit really become apparent. The figures from LMS portray a market that is vacillating between optimism and pesimism, with 52% of borrowers expecting an increase in interest rates in the next 12 months.
If you are considering a remortgage then you might do well to come and talk to the experts over at Real Financial, you can visit our offices in the centre of Burnley, Grimshaw St, visit the website www.realfa.co.uk, or call 0345 646 0809. Real Financial Advice is an independent financial advisor, that means that they are not restricted to suggesting one or two different products like the banks are, in fact they can search 1000s of different mortgages and they won’t push you in any particular direction. They’ll take a look at your individual situation and recommend something that fits.