With over £24 billion worth of mortgages due to come to an end in October, the Times reported this week on the ongoing battle for remortgage business.
As economic uncertainty continues lenders are competing to offer the cheapest fixed rate mortgages, and recent figures show a drop in average fixed rates since the referendum of 2016. Industry experts have predicted that interest rates could fall even further over the coming weeks.
Attracting new business isn’t simply a matter of offering the lowest rates however. The Sun revealed this week that Yorkshire Building Society has become the latest lender to offer a range of 15 year fixed rates, following a recent launch by Virgin Money.
Longer term mortgage deals have increased in popularity in recent years, and can be a useful option for those reluctant to gamble on which way rates will move in the future. Borrowers are advised to think about any potential future changes in their circumstances before locking themselves in for this length of time.
Some of these deals carry hefty Early Repayment Charges, and while most fixed rates can be transferred to a new property if you decide to move home, there are no guarantees that your lender will allow it, or that you will fit criteria at that time.
What the papers said about the mortgage price war and a new launch