Remortgage "frenzy" predicted

5 February 2009

If fixed-rate mortgages continue to fall in cost, the UK may witness a remortgaging "frenzy", it has been claimed.

Research conducted by Unbiased.co.uk found that the average rate at which British consumers are willing to fix their mortgage for three years is 3.86 per cent.

This is only slightly lower than the deals of 3.99 per cent currently being offered by some lenders, the advice website points out.

Chief executive of Unbiased.co.uk David Elms said: "Even without a further rate cut [today], interest rates are now four per cent lower than just 12 months ago."

He went on to warn that, with interest rates so low and with further cuts likely to have been priced in by lenders, consumers may lose out on the best fixed-rate deals if they wait too long.

At noon today (February 5th), the Bank of England`s Monetary Policy Committee will announce its decision concerning the UK`s base rate of interest.

Tags: remortgage, remortgage frenzy

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