When the Bank of England cut its base rate to 0.25% in August 2016, savers across the country probably threw their arms in the air in dismay – now is definitely not a good time to try and earn interest from money you keep aside for that rainy day. On the other hand, those looking to borrow money were probably doing victory dances in their living rooms. Why? Because the cost of taking out a loan or mortgage, just became a bit more affordable.
And when it comes to benefitting from record low interest rates, we don’t need any encouragement – August 2016 figures show that the number of remortgages are up 45% since the same time last year as home owners take advantage of this. In addition it looks like home owners are also paying down outstanding debt at the same time, as the average loan to value rate has fallen by 6%. This is due to borrowers looking to pay down debt to gain access to lower interest rates or paying off debt rather than saving money given interest rates on savings are so low
But that’s not all. Home owners are now re-mortgaging more often, with the average time between mortgages now four years and seven months – down from an average of five years previously.
And if you haven’t jumped on the remortgaging bandwagon – what are you waiting for? If your fixed term is up for renewal or you’re not locked in, why not see what you could save?
But if remortgaging is just a dream and it feels like the first rung of the property ladder is just too high to reach, then find out what you can do to save for a mortgage as well as understanding exactly what a first time buyer mortgage is all about. We’ll even help explain what you can do to maximise your chances of mortgage approval.
Whatever sort of mortgage you need, from re-mortgaging, home mover, first time buyers, or buy to let, you can search and compare for one right here at comparethemarket.com; so are you ready to compare?