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Remortgaging makes ‘undeniable sense’

John Charcol senior technical manager Ray Boulger says the time has come for many borrowers on standard variable rates to consider remortgaging.

He says those on SVRs of 3.5 per cent or higher and whose loan to value is less than 85 per cent should particularly consider looking to remortgage onto a fixed rate.

He says remortgaging is now a much more viable option than it has been over the past two years and with two lenders having increased their SVRs this month – 16 since base rate fell to 0.5 per cent – borrowers on SVRs are more likely to see rate increases rather than decreases.

Boulger also says the availability and pricing of mortgages at higher LTVs has improved significantly, meaning even remortgaging with an 85 per cent LTV would be worthwhile for some.

He says: “At a time when the entire nation is being prepped for cuts in all areas of life, cutting what for most will be their largest single financial commitment makes undeniable sense.”

The Mortgage Practitioner principal Danny Lovey says: “Each case must be judged on its merits to see what suits the client.”

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