The London-based broker expects the remortgage trend within the residential market to increase in August and remain high over the next few months as the fixed rate price war takes shape.
As well as in increase in remortgages, John Charcol expects the proportion of borrowers taking fixed rates to increase in the coming months.
The brokers says that the general feeling is that bank rate will not rise for some years to come - in fact it may even go down later this year - and so trackers are the natural choice in this market. Yet, with fixed rates at all time lows, buying security now is going to appeal to many borrowers, particularly following the hike in standard variable rates by many lenders just a few months ago.
Simon Collins, mortgage technical manager, at John Charcol, said: "There's no doubt that we are in the midst of a fixed rate price war as lenders start inundating the mortgage market with their newly cut rate products.
“Even before the raft of new fixed rates, the market was becoming more competitive and remortgaging was starting to pick up again. With these new products many borrowers who are coming to the end of their current deal can remortgage onto a 5-year fixed rate that's cheaper than their current lenders SVR.
“Even those borrowers who have been sitting comfortably on a lender's SVR can now realistically look to move their home loan. It's been a long time coming."
