{"id":5023566,"date":"2019-05-01T09:46:06","date_gmt":"2019-05-01T08:46:06","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5023566"},"modified":"2019-05-01T09:46:06","modified_gmt":"2019-05-01T08:46:06","slug":"borrowers-with-fixed-terms-ending-in-2019-expected-to-avoid-svr","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/news\/borrowers-with-fixed-terms-ending-in-2019-expected-to-avoid-svr\/","title":{"rendered":"Borrowers with fixed-terms ending in 2019\u00a0expected to avoid SVR\u00a0\u00a0"},"content":{"rendered":"

Higher standard variable rates (SVR) are expected to encourage b<\/span><\/b>orrowers to remortgage<\/span><\/b>\u00a0at the end of their fixed-term<\/span><\/b>,<\/span><\/b>\u00a0with\u00a0<\/span><\/b>Moneyfacts.co.uk<\/span><\/b>\u00a0predicting activity peaking\u00a0<\/span><\/b>in October this year<\/span><\/b>.<\/span><\/b>\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

The latest research by Moneyfacts suggests that a<\/span>n upsurge in<\/span>\u00a0remortgaging\u00a0<\/span>activity<\/span>\u00a0could be on the cards<\/span>. Data show that borrowers who opted for a two-year fixed rate mortgage in 2017, when the average interest rate was 2.30%<\/span>,<\/span>\u00a0could see their interest rate more than double if they revert to the average standard variable rate of 4.89% at the end of their term.\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Fixed-terms ending in October 2019 will see\u00a0<\/span><\/b>highest increase<\/span><\/b>\u00a0<\/span><\/h3>\n

All b<\/span>orrowers coming out of a fixed-term of two or more years\u00a0<\/span>in 2019,\u00a0<\/span>will be keen to avoid a significant hike in their monthly mortgage payments. Moneyfacts data suggests the impact w<\/span>ill<\/span>\u00a0be even more\u00a0<\/span>costly\u00a0<\/span>for those that borrowed in October 2017, when the average t<\/span>wo<\/span>-year fixed rate mortgage rate fell to a record low of 2.20%.\u00a0<\/span>\u00a0<\/span><\/p>\n

Borrowers that fail to remortgage when their term ends this\u00a0<\/span>October\u00a0<\/span>will<\/span>\u00a0revert to\u00a0<\/span>the<\/span>ir lenders<\/span>\u00a0SVR\u00a0<\/span>\u2013 the current\u00a0<\/span>average<\/span>\u00a0SVR is\u00a0<\/span>4.69%. For a repayment mortgage of \u00a3250,000, on a fixed-rate of 2.20% until October 2019, reverting to\u00a0<\/span>the<\/span>\u00a0SVR could increase their mortgage payments by \u00a34,336.20 per year.\u00a0<\/span>\u00a0<\/span><\/p>\n

Remortgaging\u00a0<\/span><\/b>will<\/span><\/b>\u00a0save borrowers thousands\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

Savvy borrowers will\u00a0<\/span>avoid sitting on their lenders SVR for even one month<\/span>\u00a0and\u00a0<\/span>save themselves thousands by looking at their options well in advance of their fixed rate ending. The current average two-year fixed rate is 2.47%, far lower than the average SVR, and there are still\u00a0<\/span>many<\/span>\u00a0lender\u00a0<\/span>deals with\u00a0<\/span>rates lower than 2%<\/span>.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

It\u2019s also likely that the increase in demand for remortgages this year could see lenders lowering rates as they compete<\/span>\u00a0for new customers, something borrowers should be watching out for<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Darren Cook, finance expert at Moneyfacts.co.uk<\/span>, said:\u00a0<\/span>“The significant increase in motivation for borrowers to switch mortgage deals, and the subsequent potential increase in remortgage business<\/span>,<\/span>\u00a0as a result, may push some mortgage lenders to marginally cut rates over the next few months to maintain a competitive edge<\/span>\u201d<\/span>.<\/span>\u00a0<\/span><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Higher standard variable rates (SVR) are expected to encourage borrowers to remortgage\u00a0at the end of their fixed-term,\u00a0with\u00a0Moneyfacts.co.uk\u00a0predicting activity peaking\u00a0in October this year.\u00a0\u00a0 The latest research by Moneyfacts suggests that an upsurge in\u00a0remortgaging\u00a0activity\u00a0could be on the cards. Data show that borrowers who opted for a two-year fixed rate mortgage in 2017, when the average interest rate… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":10916,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[],"class_list":["post-5023566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-mortgages-money","category-uk-housing-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/5023566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=5023566"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/5023566\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/10916"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=5023566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=5023566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=5023566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}