There’s never been a better time to remortgage

The number of mortgage products is continuing to rise, with the number of deals on the market having increased by 61% in just five years, according to Moneyfacts.

Since April 2009, the number of products on the mortgage market hit an all-time low of 1,209. The volume of live deals now stands at 4,657, which is up on 3,814 products in August 2016 and almost 2,000 higher than the number of products on the market five years ago.

This month’s boost to product numbers means there have been 15 months of consecutive increases in residential mortgages, according to the Moneyfacts UK Mortgage Trends Treasury Report, which provides an in-depth monthly review of changing mortgage trends, including all the relevant facts on the UK’s residential and buy-to-let markets.

 Moneyfacts observes: “The numbers this month were boosted by several lenders entering the three-year fixed rate market, which saw the number of three-year fixed rate deals increase by 48 products to 439.

The two-year fixed rate sector has seen heavy competition, causing providers to look elsewhere. The three-year fixed rate market offers providers an opportunity that some have used to branch out.

Widespread talk of a base rate rise means that borrowers are starting to look at their options to protect themselves from a potential rise in monthly repayments. Since a five-year fixed rate can be too long for some, a three-year deal can bridge the gap for those wary of fixing for longer.

The average three-year fixed rate is 2.54% in August, so borrowers will need to decide whether the extra year’s security is worth a 0.31% premium compared to the average two-year rate of 2.23%.

Any readers who have not yet reviewed their mortgage arrangements, should do so without delay.  Too often we Brits have a misplaced sense of loyalty to our mortgage lender, instead of recognising the risk of increased costs as Bank of England rates begin to rise.  If you don’t know who to call, please email me on info@oxfordpropertyblog.co.uk and I will happily make a referral to London & Country who have access to the UK’s largest panel of lenders.  L&C offer a no-commitment telephone based assessment, which will enable you to determine your own position.  L&C can assist owner-occupiers and buy to let landlords with mortgage products to suit their needs.