Competition Among UK Lenders Feverish
The time is still right for those homeowners who were thinking of applying to remortgage. Lenders are currently locked in a competitive pricing war to gain more business. The climate is right for those who are seeking a remortgage. The threat of a hike in the base rate soon is over. Lenders realize this and are willing to wheel and deal.
Many experts are predicting the base rate could stay at the same bottom-of-the-barrel level of 0.5% for not months now, but years. Indications from some of them have put the rise taking place possibly by 2014. The Bank of England base rate has remained at the same level for more than two years now.
Competition among lenders has reached a fever pitch. This is still a one sided mortgage lending market and consumers are finding attractive deals in many places. There is even a one week low rate sale going on with Santander. Other lenders are letting their creative juices flow as well in coming up with deals which will attract any homeowners who still could qualify or benefit from a fixed rate product.
Borrowers are not only currently able to change to a fixed rate and benefit, but that change will have lasting effects being in the form of a fixed rate. Simply put, a fixed rate deal enables a homeowner to have the same monthly mortgage payment amount each and every month. The experts could possibly be wrong about the timing of the base rate hike, but that is the risk homeowners run if they choose to stay with a variable rate product.