Busy period for Remortgaging

With Swap Rates influencing fixed rate mortgage deals, there are 1.6m residential borrowers whose fixed rate deals are coming to an end in 2024, plus a further 240,000 fixed rate deals that’ll be ending for those in the Buy-to-Let sector.
(Source: UK Finance, August 2023 & February 2024)

Whilst there are rate fluctuations amongst Lenders to reflect Swap movements, others may still want to be more competitive in order to build market share. The one thing that is sure, is that for the foreseeable future, the sub 2% deals are a thing of the past.

The options for homeowners

Obviously, it’s best to avoid going onto the lenders Standard Variable Rate at the end of the deal period.

Instead, we can discuss identifying an alternative 2, 3, 5 or more years Fixed Rate deal. Which could be with either your existing lender, or elsewhere.

Conversely, do consider Tracker Rate deals (with no tie-ins) should you want flexibility, although some already on Trackers may now be looking to Fix.

Additionally, you may want to alter the amount borrowed. Either because you require additional funds, or wish to reduce the loan amount owed.

Key indicators to consider…

Average Rates

Here are the average residential fixed rates. Better deals will be on offer, such as for those requiring a 60% (or less) loan against the value of their property.

2-year fixed rate deal

– Average rate, 1 August 2024 = 5.77%

5-year fixed rate deal

– Average rate, 1 August 2024 = 5.38%

Standard Variable Rate (SVR)

– Average rate, 1 August 2024 = 8.16%

(Source: moneyfactscompare.co.uk, August 2024)

Property Prices

Look away if you’re trying to get onto the property ladder, but for those who are homeowners the gloom and doom about a sizeable drop in property values didn’t really materialise. In July 2024, the average annual UK property price rose by 2.1%, and it also increased on a month-on-month basis by 0.3%.
(Source: Nationwide, House Price Index, July 2024)

And if you want to get a feel for house price sales in your own local area, you can check out the following: gov.uk/search-house-prices (for England & Wales)
scotlis.ros.gov.uk (for Scotland)
finance-ni.gov.uk (for Northern Ireland)

Inflation

Back in October 2022 annual inflation stood at a recent high of 11.1%. It’s now down to 2%, for the second month running. 2% inflation is the Bank of England’s target figure.
(Source: Office for National Statistics, CPI, 17 July 2024)

Base Rate

After remaining at 5.25% since August last year, the Bank of England Base Rate has now been reduced to 5%, a move that will be welcomed by millions of mortgage borrowers.
(Source: Bank of England, 1 August 2024)

Whatever your situation, we’d fully assess the suitability of the options on offer. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your property may be repossessed if you do not keep up repayments on your mortgage.