According to recent data from Money.co.uk, re-mortgage approvals are at their highest in eight years.
The beginning of the year is when most people stop to reconsider their expenditure, especially as research indicates that nearly half of households in the UK run out of cash half way through January. Switching bank accounts and credit card debt are two of the most popular ways to reduce outgoings, but there are now more people looking to switch their mortgages, especially if they are on the Standard Variable Rate with their lender, or their current deal is approaching the end of its term.
The Bank of England reduced its base rate to the lowest level of 0.25% in August, which prompted millions of borrowers to switch to a fixed rate deal. Securing payments for a fixed term is popular, especially with Brexit looming in the near future.
According to Money.co.uk, moving to a fixed rate deal from the lender’s SVR, could save up to £5,000 in a couple of years. The research also found that the number of re-mortgages accepted in November, was at its highest since 2009. The CEO and founder of Trussle, the online mortgage broker, Ishaan Malhi, said:
“November’s re-mortgage approval levels haven’t been this high for eight years and we’ll no doubt see that trend continue while the base rate remains so low.”
As switching mortgages can be relatively stressful, many borrowers seek advice from a CeMAP qualified mortgage adviser, who can guide them through the process.
