Remortgaging specialist homefast says the base rate rise will further boost the remortgage market.
John Brian of homefast says: “Following today's rise and with interest rates widely expected to exceed 5% by the end of the year there is a huge incentive for people to remortgage. The most popular mortgages are likely to be short-term fixed mortgages due to the great headline rates provided by Britannia and the Co-operative Bank, which both have a two-year fixed at 4.79%.
“Remortgaging accounted for only 37% of the market in April, according to the CML's latest figures, down from 41% in March. But this slowdown is not expected to be permanent as people are almost always better off remortgaging than staying with the SVR and the latest rate rise is likely to prompt an increase in remortgage activity.”