“It’s time to start thinking about remortgaging,” says Yorkshire BS

Posted on Friday, August 11 by Joy Tibbs

Data from CACI suggests that approximately £17 billion worth of UK mortgages are due to mature in September, with more than £18 billion worth set to mature in October, the largest two-month maturity period since 2012.

Analysis from Yorkshire Building Society indicates that homeowners looking to remortgage could see their monthly repayments fall thanks to reduced mortgage rates and increased house prices.

As an example, a London homeowner who initially borrowed 90% of a £250,000 property in July 2015 at a market average rate of 3.60% could now benefit from a reduced loan-to-value (LTV) of 72% when taking out a mortgage in July 2017 after house prices in the area increased by 14.9% during the two-year period. Switching to the Yorkshire’s current two-year fix of 1.14% for borrowers with a 75% LTV could save £255 a month in repayments, a total of more than £3,000 a year.

Charles Mungroo, mortgage manager at Yorkshire Building Society, said: “With such a large proportion of mortgage deals coming to an end in September and October, we expect to see a surge in remortgages soon.

“Homeowners should be planning ahead long before their fixed period ends to ensure they get the best option. Longer-term fixes may appeal to borrowers who want to keep their monthly repayments as low as possible whilst also being able to budget for the next five years.

“All our mortgage offers are valid for six months so customers have reassurance that they’ve secured a great rate but they also have some breathing space if they have other priorities at the moment, such as a summer holiday.”

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