You are here: Home - Mortgages - Remortgage - News -

Rate war sees homeowners flock to fixed-rate mortgages

0
Written by: Paloma Kubiak
02/11/2016
Homeowners are looking to take advantage of cheap fixed mortgage rate deals when their current loan expires.

A survey of over 2,000 homeowners by Nottingham Building Society found 65% will go for a fixed rate mortgage once their current deal expires, with half favouring a two or three-year deal and the other half considering a five-year plan or longer.

Bank of England data shows average two-year fixed rates have reduced substantially since 2014, saving the typical re-mortgage customer more than £1,000 a year.

However, the research shows confusion among remortgage customers as 16% don’t know what they’ll do when it comes to their next mortgage deal, while 6% said they will move on to their lender’s standard variable rate.

Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services (part of The Nottingham), said: “The ongoing mortgage rate war among leading lenders has seen the launch of a range of low rates.

“The best deals do not tell the whole story of course as deals vary depending on how much equity homeowners have or how big a deposit they can find. But the trend in the past two years has been down and there are potentially substantial savings to be made.”

He said that customers need to be able to search the whole market and to look for as wide a range of deals as possible before making a decision on their next mortgage deal which means getting expert help.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week