One in five homeowners says they will consider remortgaging during 2013, according to research compiled by Lloyds TSB.
A survey of 845 people conducted by Lloyds found that 19 per cent said this year could be a good time to consider remortgaging as figures show the average rates on two and five-year products have dropped by 19 per cent and 32 per cent, respectively since 2010.
Lloyds TSB mortgage director Marc Page says: “SVRs have been at historically low levels for quite some time, so it is no surprise that many homeowners haven’t considered moving from them. But with fixed rate mortgages falling, and some good deals expected on the market this year, now is the time for borrowers to consider the benefits of remortgaging.”
Figures compiled by Moneyfacts show the average two-year fixed rate for remortgage customers in 2010 was 4.68 per cent and this has since dropped to 3.80 per cent, while the average five-year fix had fallen from 5.78 per cent to 3.91 per cent over the same period of time.
The lowest five-year fixed rate for remortgagers in 2010 was 4.44 per cent from Legal and General Mortgage Club and Accord Mortgages. Currently, the lowest remortgage rate available on a five-year fixed basis is 2.64 per cent, from First Direct.
A spokeswoman for Moneyfacts says: “With many lenders competing to be the lowest in the market, rates have fallen across the board. However, any significant reductions have been aimed at smaller LTVs which will no doubt help those looking to remortgage today.”
Figures from the Council of Mortgage Lenders show remortgage approvals totalled £46bn in 2012 – down 8 per cent on the £50bn recorded for 2011 but 5 per cent higher than the £44bn in 2010.