2021 Predicted to be a Big Year for Remortgage Activity
The hysteria surrounding the temporary stamp duty holiday will live long in the minds of many. Not that it has yet come to an complete end, with the extension of certain privileges to homebuyers having once again been extended until the end of September.
By acting fast, homebuyers picking up properties for no more than £250,000 still stand to make significant savings.
But while much of the attention has been focused on this sector, the UK’s remortgage market has also been booming this year. More importantly, the same is predicted to continue for the months to come, which could result in 2021 becoming one of the biggest years for remortgages in some time.
According to the latest figures released by CACI, a total of £183.2bn of mortgages will mature this year. There will be certain times during the year when major spikes will occur in the number of mortgages exiting their initial fixed or variable period. For example, approximately £29bn of mortgages will be moving to standard variable rates in October.
This represents a huge contingency of customers, new and existing, who need to prepare for significantly higher mortgage rates within the next few months. All at a time when their financial situation may already be far from perfect, as the effects of the COVID-19 pandemic continue to linger.
The sheer size and potential of the remortgage market for the rest of the year has prompted a growing number of lenders to introduce incentives and review their pricing structures, in order to make their products more appealing.
For lenders, it represents an invaluable opportunity to help borrowers avoid the potential costs of being shifted to a less competitive SVR mortgage. For the borrower, the sheer competition among lenders is likely to result in rock-bottom remortgage rates as the ‘price war’ plays out.
The Benefits of Broker Support
This is likely to continue emphasising the importance of independent broker support. It is inevitable that many borrowers will find themselves in a position where the most cost-effective option is to remortgage with a new lender. A process that begins by conducting a whole market comparison, factoring in the various costs and potential penalties involved in transferring providers.
In addition, established brokers are able to provide access to special deals and incentives that are not available on the High Street. Often, applying via a broker is the only way to gain access to the most competitive deals available.
Should it prove the case that competition among lenders peaks over the autumn period, an intensive market comparison (incorporating specialist independent lenders) could hold the key to significant savings.
Whether you are planning ahead or fast approaching the end of your introductory fixed-rate period, we would be delighted to conduct an extensive comparison on your behalf to find you an unbeatable deal. Call the team at UK Property Finance anytime for an obligation-free consultation.