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Frantic Race To Remortgage As Rates Plummet


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HOMEOWNERS are rushing to remortgage to take advantage of record low mortgage rates, new figures show. Remortgage applications jumped 24 per cent in January from December, according to data released by the Mortgage Advice Bureau today. Year-on-year, January saw a 17 per cent increase in remortgage applications. It compares to the 12 per cent climb in applications for house purchase.

Remortgaging can save borrowers an average of £2,304 a year, the figure equates to a 4.8 per cent pay rise for the typical borrower.

http://www.cityam.com/209988/frantic-race-remortgage-rates-plummet

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Meanwhile, pensioners taxed and earned savings are annihilated.

I don't necessary think this is a bad thing. If all yields go to zero assets have to be sold to produce an income. If you were rich which would you rather live off yield or have to sell assets?

This could start to lower inequality taking it that no one who has millions would want to live like us plebs.

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I wonder how many of these people rushing to remortgage actually save money once all the lovely fees are factored in?

As an existing first direct customer i managed to remortgage with NO fees on to a 1.29 above base for life tracker.

Think the fee for new customers was £950 - probably still a good deal depending on size and term of mortgage.

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About to drawdown on a 1.79% tracker from HSBC, I was planning to overpay but recently I have been thinking about adding my monthly savings to a ZOPA account instead. The only risk with idea is that interest rates rise sharply and I am stuck for a few years paying higher mortgage interest rate that I can get from peer to peer lending.

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Seriously though, how much lower can they go?

Lower.

Looking at those retail sales volumes today firms in that sector appear to be slashing prices. Seems to be similar situation in mortgages. The weaker players will have to exit market or merge.

Edited by Ash4781
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  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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