Is it time to remortgage?

Discussion in 'Mortgages' started by realdeals, Jul 31, 2017.

  1. realdeals

    realdeals Active Member

    There are signs that the next UK interest rate move will be higher - is the door about to shut for UK home owners looking to remortgage?
  2. Longterminvestor

    Longterminvestor Administrator

    The Bank of England seems to be back tracking on a rise in UK rates even though Mark Carney recently suggested rates were certain to rise in the short term. He is now blaming concerns about Brexit - it looks to me as though he is actually making the situation worse by scaremongering.

    Recently someone mentioned how just a couple of years ago nobody would touch the euro and there were concerns the EU would fall apart - all of a sudden it is the next big powerhouse? Not convinced about that - the UK Brexit talks are deflecting concerns about the EU and underlying economy. People seem to forget that the UK did not switch to the euro so was never really an integral part of this "project".
  3. realdeals

    realdeals Active Member

    Personally I am starting to think that rates wont get much lower than where they are now but it could be a while before they move substantially upwards.
  4. Longterminvestor

    Longterminvestor Administrator

    After recent B of E statement it is looking like base rates wont rise much in the short term and while mortgage rates may tick up slightly it is unlikely they will run-away in the short to medium term?
  5. realdeals

    realdeals Active Member

    Is Mark Carney starting to lose the trust of the City? He has ramped up expectations of interest rates rises on so many occasions only to be forced into a quick u-turn when things change.
  6. Longterminvestor

    Longterminvestor Administrator

    Totally agree - very unlikely mortgage rates will increase substantially in the short term.
  7. The leaks from the Brexit talks are doing a lot of damage in the short term and the EU should be pulled up about this. As a consequence it is hard to see the UK economy blossoming in the short term which will likely mean UK base rates will remain relatively unchanged for the foreseeable future. There will be opportunities to cherry pick some good re-mortgage deals over the next few months/couple of years.
  8. realdeals

    realdeals Active Member

    I think the Brexit leaks cast the EU in a terrible light - very very unprofessional. Is this really the kind of club you would want to be part of?
  9. nmb

    nmb Well-Known Member

    Surely it would be counter productive if those with mortgages were not able to remortgage on low long term rates?
  10. I think what he means is that regulations are there to protect the industry and consumers. If an investor has a mortgage and might be able to remortgage at a lower rate, that would reduce their financial liabilities and in turn offer more security to the lenders mortgage book.

    However, unfortunately this is not always the case today as regulations have changed but it would be bizarre if you could keep your current (higher rate) mortgage but not remortgage at a lower rate because of your personal situation?
  11. diyhelp

    diyhelp Active Member

    Common sense from the regulators - whatever next!
  12. Longterminvestor

    Longterminvestor Administrator

    I think we need to put this into perspective, mortgage rates would still be at near historic lows even if UK base rates increased by 0.25% up to 0.5% next month.
  13. Chris Garren

    Chris Garren New Member

    To secure the best remortgage deal it is important to look at more than the base rate. You need to search the whole market and to be aware of the product fees that may be charged. A great rate won't save you much if you have to pay a high fee.
  14. lookinginvest

    lookinginvest Member

    I agree - a conservative tracker means less messing around, more straight forward planning and avoiding fees when jumping from mortgage to mortgage.
  15. mariawoodson

    mariawoodson New Member

    i agree but We know that more rental properties are needed to fulfil demand so should we see rental yields increase if there are fewer buy to let properties? when im i think this is the time to remortgage
  16. Have all mortgage companies passed on the 0.25% increase in base rates?

    I see some banks have even failed to pass on the 0.25% increase in base rates for savers. When you consider the minimal savings rates today, that is a scandal.
  17. FWL

    FWL Member

    Now may well turn out to be the opportune moment to remortgage your property(s) but ultimately I do not see interest rates rising quickly in the short to medium term. Indeed, if Brexit talks end in a stalemate then there is every chance that the Bank of England could be forced to reduce base rates to support the economy. The next two years, even the next 12 months, are going to be vital for the UK economy both in the short term and the longer term. It would take a brave person to call this one!
  18. Trey

    Trey New Member

    Re-mortgage is always wise to maximize your capital to get higher return on investment. Anytime is a good time..
  19. lookinginvest

    lookinginvest Member

    With all of the doom and gloom surrounding the UK just now it does not look as itf interest rates will be moving higher any time soon. We might even see a shoft down in the short term. However, if you decide to remortgage on lower rates I would do it now, now is the only time you know the real rates, anything else is just guess work.

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