Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“Remortgage approvals hit their highest level in four years in July, as the prospect of an interest rate rise prompted many homeowners into action. China’s financial crisis may have now thrown doubt over when we can expect a base rate rise, but homeowners still stand to save significant amounts by switching to one of the record low rates available on the market. This is particularly true of those borrowers currently languishing on their lender’s standard variable rate (SVR).
“Several lenders did increase their pricing in July, so if borrowers are in a position to make a long-term commitment, a fixed rate can protect against future rises. It’s unlikely that today’s rates are going to be around for much longer: locking in now will extend the life of record low rates and maintain savings for as long as possible.
“Our recent analysis showed that the prospect of remortgaging was keeping many borrowers up at night, with the majority of remortgage searches taking place between 10pm and 6:59am. However, it is a process worth doing: delaying too long runs the risk of missing out significantly reduced mortgage bills. An independent mortgage broker can also help make the remortgage process faster and more efficient.”