Yorkshire BS: record low remortgage rates attracting more customers

Posted on Monday, October 12 by Joy Tibbs

New figures from Yorkshire Building Society show that consumers are snapping up record-low mortgages, with the number of remortgage applications over the summer up by more than 70% year-on-year, following speculation that a Bank of England interest rate rise is around the corner.

The bank’s data shows an upsurge from June this year, when remortgage applications increased by 18% compared with the same month in 2014, while July saw a huge 127% jump year-on-year. Remortgage levels were also high in August, when 87% more households chose to renew their mortgage deals than at the same time last year.

Mortgage rates were at a record low during July, according to Moneyfacts, when the average two-year fixed mortgage rate fell by 0.16% at the start of July to 2.76% at the beginning of August; the lowest rate on record.

Rachel Springall, finance expert at Moneyfacts, said: “Mortgage rates have been at record lows this year, but since the murmurings of a base rate rise, it is expected that the lowest deals won’t be around forever. This expectation can lead to a surge of customers looking to get a better deal right now, so they don’t miss out.”

Brendan Gilligan, product manager at Yorkshire Building Society, said: “Remortgaging has been a key activity this summer. We have seen a huge upsurge in the numbers of borrowers wanting to renew their mortgage.

“It seems that record-low mortgage rates, combined with the looming spectre of a Bank of England base rate rise has created conditions which have encouraged homeowners to think about looking at their existing mortgage and seeing if they can get a better rate.”

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