Borrowers should not become complacent over declining mortgage rates, concludes Moneyfacts in a report issued regarding the current “two-year fixed rate war.”
From January 2019 to March 2019, the average two-year fixed rate has dropped from 2.52 per cent to 2.49 per cent.
However, Moneyfacts believes that the current lending environment is “unlikely to continue indefinitely” – reporting that rates rose 0.14 per cent between March and November last year.
Additional data collected by the firm shows that remortgaging is on the rise: there were 48,900 remortgages approved in November 2018, increasing to 50,400 in December 2018, indicating that borrowers are taking advantage of current rates.
However, Moneyfacts expert Rachel Springall says that, “any borrowers yet to refinance or who are adopting the ‘wait and see’ approach when deciding on whether or not to make a house purchase might want to consider doing so if they are anxious about ongoing uncertain economic factors.”
She explains that, “the housing market is feeling the anxieties of the economic uncertainty, with activity subdued.
“Indeed, surveyors are reporting a drop in new buyer enquiries and new properties coming onto the market are also down.
“The average house price has now dropped by £2,740 since November 2018 to stand at £211,304, which is good news for buyers, but not so good for those hoping for their equity share to rise for refinancing purposes.”