The number of existing borrowers seeking to remortgage is expected to continue growing in popularity, according to research collected by Moneyfacts.
The data shows that borrowers opting to remortgage is expected to reach a peak in October 2019.
In May 2017 the average two-year fixed rate was set at 2.30 per cent – borrowers could see their interest rate more then double when moved to the average SVR of 4.89 per cent, according to the financial research company.
Further data shows that the average two-year fixed rate sank to 2.20 per cent in October 2017, and if the average SVR remains at 4.89 per cent, Moneyfacts projects the average difference in the reversion rate to reach 2.69 per cent by October 2019.
Moneyfacts finance expert Darren Cook comments: “Over the next six months, it is likely that many mortgage borrowers who secured a two-year mortgage deal two years ago may see their record low interest rate expiring and will have no intention to revert to a rate that could see their interest rate double overnight.
“This significant increase in motivation for borrowers to switch mortgage deals, and the subsequent potential increase in remortgage business as a result, may push some mortgage lenders to marginally cut rates over the next few months to maintain a competitive edge.
“The average two-year fixed rate fell from 2.49 per cent in March to 2.47 per cent now, which could be attributed to rate cuts at higher risk LTV tiers to attract first-time buyer business.
“It will therefore be interesting to see if the average rate falls further still as providers potentially to target remortgage customers – and therefore lower LTV tiers – as we approach October.”