10 Feb, 2010

Since the base rate is expected to continue remain at a record low well into 2010, it has been suggested that it would be sensible for some borrowers to remortgage especially, those with more than 20 per cent equity in their homes who are paying a rate of 3.5 per cent or even higher.

Remortgaging continued to plunge throughout 2009 as a lack of competitive deals discouraged borrowers from seeking a refinancing deal, or meant that they were unable to switch to a different lender; so instead, they remained on their lenders' standard variable rate, which could further change.

The spokesperson for Bank of England further clarified, "The slowly improving mortgage market will certainly make acquiring an asset a little easier. However, with several lenders having already announced increases in their standard variable rate (SVR) over the last month, it will also mean that more borrowers will find it worthwhile remortgaging."

If the overall asset value continues to increase as is the current trend, there will be a major growth, for sure, in the number of homeowners looking for remortgage as recourse with at least 20 per cent equity in their properties, making a remortgage increasingly useful for more and more homeowners in future.