How a broken mortgage market gets back on its feet
Data from UK Finance has revealed that the remortgage market enjoyed a healthy boost in 2017, with rates up 15 per cent year-on-year. This was in part due to the promise of the Bank of England’s rate rise decision, taken in November but heavily mooted from September - spurring homeowners into taking action on their mortgages.
And not a moment too soon. HSBC estimates that one in three homeowners could save up to £4,000 every year by remortgaging from a standard variable rate mortgage (SVR) to a fixed two, three or five year product. Indeed, the Citizens Advice Bureau reported that homeowners are being financially penalised when they are shifted from their cheap introductory rate to an expensive SVR in a form of ‘loyalty trap.’ Read more.