Posts with tag: remortgage deals

Remortgage Approvals Rise as Homeowners Rush to Avoid Rate Increase

Published On: September 4, 2015 at 9:47 am

Tags: base rate rise,homebuyer mortgages,remortgage deals,remortgaging rates

Remortgage Approvals Rise as Homeowners Rush to Avoid Rate Increase

Remortgaging reached the highest level for seven years in July, as homeowners rush to take advantage of the record low borrowing rates before they increase.

38,042 remortgage deals, worth a total of £6.4 billion, were approved. This is the highest total since November 2008.

Loans for homebuyers also hit a 17-month high, with 68,764 approved in July at a total value of £11.6 billion.

Economist Howard Archer says that the figures are “compelling evidence” that housing market activity is strengthening, boosted by those “looking to lock in a low rate before they start rising.”¹

In July, Bank of England (BoE) boss Mark Carney indicated that the base rate could rise from 0.5% at the turn of the year.

¹Taylor, J. (2015) ‘Re-mortgaging deals spike in rush to beat rate rise’, Metro, 2 September, p.24

Homeowners Remortgage to Avoid Interest Rate Rises

Published On: August 12, 2015 at 2:53 pm

Author: Em Morley

Categories: Finance News

Tags: first time buyers,interest rate rise,remortgage deals,remortgaging rates

Homeowners Remortgage to Avoid Interest Rate Rises

The amount of homeowners remortgaging in June rose by a third, as they hope to avoid imminent interest rate rises.

Around 31,600 loans worth £5.1 billion were granted in June, according to the Council of Mortgage Lenders (CML).

Additionally, 28,300 first time buyers had mortgages worth a total of £4.2 billion approved in June. This is a 22% increase on May.

Director General of the CML, Paul Smee, says: “It is likely people are now beginning to feel a rate rise is a realistic prospect and not just a distant theoretical possibility.”¹

¹Binns, D. (2015) ‘Re-mortgages soar to beat interest rate rise’, Metro, 12 August, p.2

Leeds BS offer free remortgage deals

Published On: July 22, 2015 at 2:43 pm

Author: Em Morley

Categories: Landlord News

Tags: Leeds Building Society,mortgages,remortgage deals

Leeds Building Society has today announced that it has extended its variety of interest only mortgages, adding two new fee-free deals for remortgages.

Recently, the Society added to its standing interest only mortgages available up to 50% LTV by introducing part and part interest only mortgages up to 75% LTV, with up to 50% LTV on interest only and the rest on a capital and repayment basis.[1]

The pair of fee-free deals are 2.29% two year fixed rate interest only remortgage up to 50% LTV and a 2.49% two year fixed rate part and part interest only remortgage up to 75% LTV.[1]

Both remortgage deals come with free valuations for homes worth up to £500,000 and fees assisted legal services in order to lower the cost of switching rates.

Leeds BS offer free remortgage deals

Expected

Martin Richardson, Leeds Building Society General Manager of Business Development, commented, ‘since we introduced part and part interest only mortgages two months ago, the vast majority of applications have been for remortgages. This is broadly in line with what we expected-we anticipated part and part would appeal in particular to existing interest only borrowers who had yet to make any progress paying down their original loan.’[1]

‘This alternative offers them the opportunity to start reducing their outstanding capital without the payment shock they’d experience if they changed to a full repayment mortgage. This category of borrowers can include existing interest only homeowners who may be facing an endowment shortfall,’ Richardson concluded.[1]

[1] http://www.propertyreporter.co.uk/finance/fee-free-remortgage-range-launched-at-leeds.html