Homeowners re-mortgaging ahead of rate rise
According to a report on the BBC the number of home-owners re-mortgaging increased by 30% in June – the highest level since September 2013, as borrowers locked in to new deals ahead of the rise in interest rates.
The figures were provided from the Council of Mortgage Lenders (CML).
During June; 31,600 households changed their mortgage deals, compared with 24,300 back in May.
Those who are not on fixed deals at the moment may see payments increase when vase rates rise, which could be as soon as December the Bank of England have warned.
Paul Smee, the director general of the CML said: “Notable this month is the uptick in re-mortgage activity among home-owners, perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates, it is likely that people are now beginning to feel a rate rise is a realistic prospect, and not just a distant theoretical possibility.”
The re-mortgage rush has been confirmed by price comparison site Compare the Market, which has said that it has seen a 23% spoke in re-mortgage queries between June and July.
The last time the interest rates went up was back in 2007; as a result of this more than a million homeowners have no experience of a rise in rates according to CML.