December and April traditionally are the biggest months for remortgages as most existing mortgages mature then. According to CACI, which provides retail finance market benchmarking, April alone will account for 11% of the £184bn of mortgage maturities in 2020.
The value of maturities this April and December are significantly higher than last year with an increase of 14% and 70% respectively.
The average outstanding balance of mortgages that mature in April is £149,736 with 19 years still to run.
The reason for this surge is primarily due to interest rates being at their historic low, due to the government’s efforts to keep the economy going amid the coronavirus pandemic. The result of that is that the remortgage rates on offer are particularly attractive and many people are seeking to benefit from this.
Alison Mitchell, Senior Mortgage Adviser with Edinburgh based IFA RobMac, said “It’s a good time to review your existing mortgage, even those on higher variable rates, because although the base rate has dropped, we can still secure rates starting from as low as 1.19%.
Contrary to belief, lenders are still lending. This week, we saw lenders coming back into the market at higher Loan to Value (LTV) ratios even though some rates are increasing.
We can review your mortgage and make sure that we secure the right product for you during this uncertain period, this even applies to those clients that have been furloughed and are also on a payment holiday.”
Alison concluded, “We have never been busier, but we’re still keen to help as many people as we can as there has never been a better opportunity to secure excellent mortgage deals.”
If any of the above is of interest to you and you would like to discuss your mortgage further, you can arrange to meet online with one of our financial advisers by scheduling an online meeting here >>
