Busy period for Remortgaging

Not only are there 1.6m residential borrowers whose fixed rate deals are coming to an end in 2024, but there are also around 240,000 fixed rate deals 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 February 2024 = 5.56%

5-year fixed rate deal
– Average rate, 1 February 2024 = 5.18%

Standard Variable Rate (SVR)
– Average rate, 1 February 2024 = 8.17%
(Source: moneyfactscompare.co.uk, February 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 January 2024, the annual drop across the UK was just 0.2%, and month-on-month house prices rose by 0.7%.
(Source: Nationwide, House Price Index, January 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 4%, and moving nearer to the Bank of England’s target figure of 2%.

A lower rise in costs can only be a positive development for most.
(Source: Office for National Statistics, CPI, 14 February 2024)

Base Rate

One of the primary drivers for a move in the Base Rate, is to help keep control of inflation. Across the 2022/23 period there were 14 consecutive rises in the Bank of England’s Base Rate to do just that.

Whilst we’re yet to see a drop, it’s now been held at 5.25% for the last four meetings. (Source: Bank of England, 1 February 2024)

With so much to consider, it can all be quite confusing, and that’s why you
should talk to us.

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