With suggestions of an interest rate rise, possibly as soon as next month, the financial press reported this weekend on the levels of increased activity in the mortgage market.
The Sunday Times highlighted recent figures revealing a nine-year peak in the number of remortgage completions in January, up almost 20% on the same time last year. More borrowers are expected to take action over the coming weeks, ahead of the next Bank of England announcement.
Homeowners are advised not to hang around for too long, as recent weeks have seen rates edging up in anticipation of a potential rise, and this trend is likely to continue. There is still time to grab a good deal however, and even if you’re tied into your current mortgage you may still be able to secure a rate and arrange for it to start as soon as your existing deal finishes.
The possibility of an increase, combined with the current period of economic uncertainty has resulted in an increased demand for longer term products, the Times reported. A number of lenders have responded by introducing new 10 year fixed rates into their mortgage range, while others have cut their existing rates.
Rates on longer term deals have fallen significantly over the last decade, making them more appealing to those wanting to ride out the next few years of likely rate rises. If this type of deal appeals to you, then take a look at our best buys here. Be careful to consider your plans over the next 10 years before locking yourself into a deal however. Mortgages can often be taken to a new property if you move, but there are no guarantees.
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