Mortgages London | Mortgages in London

Industry insiders are hinting that homeowners should consider fixed rates remortgages for their London homes. This follows an announcement made by the Prime Minister last week that highlighted growing concerns over rising inflation and imminent changes in interest rates to control the impact rises may have on the economy.

As competition within the mortgage market increases, there are now some incredibly competitive fixed rate deals available that actually give variable rate mortgages a run for their money, but these may not be around for long. Mortgage advisors are therefore suggesting that Londoners remortgage soon to secure a low interest fixed rate mortgage before inflation pushed interest rates up again.

There are a couple more reasons why the time is right to choose fixed rate remortgages. One is the recent rise in house prices. With most homes in London now worth much more than they were a couple of years ago – having risen by as much as 10% over the past year – homeowners have increased their equity which means it is possible to access a lower LTV deal at a much more competitive rate than is usually associated with fixed rate.

The other reason comes with yet another announcement about the future of the country’s economy. The Organisation for Economic Cooperation and Development (OECD) warned that the Bank of England will need to increase the base rate, which is currently at an all time low of 0.5%, by December to keep inflation under control. This will of course mean that mortgage rates will rise accordingly.

Some of the best fixed rate remortgages available at the moment are for long term deals. Five year fixed rate mortgages from Britannia are now under the 4% threshold, and Nationwide has reduced interest rates on five year fixed rate deals by 0.23%. The fact that there are now 372 more five year options available than there were three years ago is also a timely reflection of the current situation.

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