August 4th saw yet another Bank of England Base Rate hike, this time to 1.75% and evidently these rises are seeing Mortgage Rates rising too. So, does this mean you should remortgage now?
It is certainly advisable if you’re within 6 months of the end of your current agreement, that you speak to us about the best next steps, but when it comes to being outside of that window it’s a bit of a balancing act.
If you’ve got more than 6 months remaining on your current deal, then you’ll need to weigh up the cost of the Early Redemption Charges against any potential savings of securing a new deal.
TimesMoney* identifies the current average rates, which could help guide your drive to remortgage:
- The average rate on a two-year fixed-rate mortgage is now 3.95%, up from December when it was 2.34%, according to data provider Moneyfacts
- The average five-year fix is 4.08%, an increase from 2.79% in December. The last time it went higher was in November 2014 when it was 3.93%.
- Average standard variable rate has breached 5% for the first time in more than 13 years. In December it was 4.40%, in August it was 5.17%
If you’re one of the one in four homeowners currently on a Standard Variable rate then you are very likely to see a rise in your mortgage payments given that these tend to rise according to the base rate and the trends in the market, and do not hold as much certainty as a fixed rate mortgage.
There are many considerations to take into account when it comes to remortgaging, for example are you going to want to draw extra funds when you remortgage, are you looking at a 2-year or 5-year fixed deal? Your circumstances will be individual to you and your needs so it is best to get in touch with our team if you’re considering your remortgage needs.
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Your home or property may be repossessed if you do not keep up repayments on your mortgage. You may be charged a fee for mortgage advice
Source: * https://www.thetimes.co.uk/money-mentor/article/remortgage/