Remortgagors grew more sceptical about the prospect of a rate rise in January, research from LMS has revealed.
Remortgagors grew more sceptical about the prospect of a rate rise in January, research from LMS has revealed.
Just one in five (22%) expected the base rate to rise soon amidst talk of the Bank of England cutting the base rate rather than raising it.
In January last year nearly a third (30%) of people expected a rate rise.
Andy Knee, chief executive of LMS, said: “With the looming possibility of a Brexit, and in the midst of global uncertainty and shaky markets, we’re seeing indications from the Bank of England of a base rate rise being pushed back further. Some have predicted a rise to be delayed until as far as 2019.
“However, borrowers appear to be wiser, and are still remortgaging to reduce costs rather than becoming complacent. Remortgage lending rose by 49% to £6.2bn in January from £4.2bn in December and was also recorded as 45% higher than the same time last year.
“With the cost of a fixed-rate mortgage at historic lows, plummeting swap rates and so many great deals on the market, it’s never been a better time to lock into low interest rates.”
More than eight in 10 (83%) people deciding to remortgage chose to switch lenders, while nearly half (46%) opted to use a broker or adviser.
