What Are the Current Remortgage Rates

Remortgaging your property can be a strategic financial move, potentially saving you significant amounts on your monthly repayments. However, understanding the current remortgage rates is crucial to maximizing these benefits. This article delves into the intricacies of remortgage rates, providing insights into how they are determined, the factors that influence them, and the current market trends. Whether you are considering remortgaging to reduce costs, consolidate debt, or release equity, this guide will equip you with the knowledge needed to navigate the remortgage landscape effectively.

Understanding Current Remortgage Rates

Remortgaging is a significant financial decision that homeowners often consider to either save money or release equity from their property. The current remortgage rates are influenced by various factors including the economic climate, lender policies, and individual financial circumstances.

Factors Influencing Remortgage Rates

Several factors can influence the remortgage rates available to you. These include: - Economic Climate: The overall state of the economy, including inflation rates and the Bank of England's base rate, can significantly affect remortgage rates. - Lender Policies: Different lenders have different criteria and policies which can affect the rates they offer. - Personal Financial Circumstances: Your credit score, income, and the amount of equity in your property can all influence the rates you're offered.

Types of Remortgage Rates

There are several types of remortgage rates available: - Fixed Rates: These remain the same for a set period, typically two to five years. - Variable Rates: These can fluctuate depending on the lender's standard variable rate or the Bank of England's base rate. - Tracker Rates: These follow the Bank of England's base rate, plus or minus a certain percentage.

Comparing Remortgage Deals

When comparing remortgage deals, consider the following: - The interest rate and the type (fixed, variable, tracker) - Any fees associated with the mortgage (arrangement, valuation, legal fees) - The term of the mortgage - Any early repayment charges

How to Find the Best Remortgage Rates

To find the best remortgage rates, you can: - Use online comparison websites - Speak to a mortgage broker - Contact lenders directly Remember, the best deal isn't always the one with the lowest interest rate. Consider all associated costs and your personal circumstances.

When to Consider Remortgaging

Consider remortgaging if: - Your current deal is coming to an end - You want to save money on your monthly payments - You want to release equity from your property - Interest rates are currently low

FAQ

What are the current remortgage rates?

The current remortgage rates can vary depending on a number of factors including the lender, the type of mortgage, the loan-to-value ratio, and the borrower's credit score. As of 2021, the average remortgage rates in the UK for a two-year fixed deal can be anywhere between 1.5% to 3.5%. For a five-year fixed deal, you might find rates ranging from 1.75% to 4%. However, these are just average figures and the actual rate you'll be offered can differ. It's always a good idea to shop around, use comparison websites, and possibly consult with a mortgage advisor to find the best deal for your circumstances.

How can I find the best remortgage rates?

Finding the best remortgage rates involves a bit of research and comparison. Start by using online comparison websites which allow you to compare different deals from a variety of lenders. Be sure to input accurate information to get the most precise quotes. Also, consider speaking to a mortgage broker or financial advisor who can provide personalized advice based on your financial situation and needs. They may have access to deals that aren't available on the open market. Remember, the best rate isn't always the one with the lowest interest rate - you also need to consider any fees involved and the overall cost of the mortgage.

When is the best time to remortgage?

The best time to remortgage often depends on your individual circumstances, but generally, it's a good idea to consider remortgaging when your current mortgage deal is about to end. This is because you'll typically be moved onto your lender's standard variable rate, which is usually higher than the rates offered on other deals. Other good times to consider remortgaging include when interest rates are low, when your home's value has significantly increased, or when you want to borrow more money.

What fees are involved in remortgaging?

When remortgaging, there are several fees you should be aware of. These can include an early repayment charge (if you're leaving your current deal early), an exit fee, a valuation fee, a booking fee, an arrangement fee, legal fees, and potentially a mortgage broker fee if you use one. Not all of these will necessarily apply, and some lenders offer deals with no fees or offer to cover certain costs. It's essential to factor in these costs when comparing remortgage deals to understand the overall cost and ensure that remortgaging is the right financial decision for you.