More mortgage borrowers moving to fixed rates
The number of UK borrowers remortgaging jumped in July – suggesting people are increasingly taking the view that the ultra-low interest rate period could be coming to an end.
Many borrowers have benefitted from extraordinarily low mortgage rates for five years since the base rate was lowered to 0.5%, but this policy was introduced under exceptional circumstances.
With the economy now firmly in growth mode, employment increasing to record levels and unemployment falling fast, there are calls for the Bank of England to raise rates sooner rather than later to head off future inflationary pressure.
Although the Bank of England has given no specific signal that interest rates will start rising, average mortgage rates have edged up a little in recent months. Despite this, many mortgage products still offer excellent value compared to historic levels and savvy borrowers are taking advantage of this.
More borrowers considering remortgaging
In the months ahead, more and more borrowers - including those who have benefited from ultra-low Standard Variable Rates (SVRs) - will be increasingly considering their remortgage options.