- Nearly two out of three mortgage customers look for new fixed deals, Nottingham Building Society research shows
- Average re-mortgage saving for two-year fixed customers could be more than £1,000 a year
Homeowners are rushing to fix mortgage payments with nearly two out of three looking for fixed rate mortgages when their current deal expires, research* for the Nottingham Building Society (The Nottingham) shows.
Its study found 65% of remortgage customers will go for fixed-rates split almost equally between homeowners looking for two or three-year deals and those planning to take out fixed-rate mortgages for five years or longer.
Potential savings are substantial – Bank of England data** shows average two-year fixed rates have reduced substantially since 2014.
However The Nottingham’s research shows confusion among remortgage customers – around 16% of homeowners don’t know what they will do when it comes to their next mortgage deal while 6% will move to the standard variable rate.
Research among mortgage brokers*** shows their clients are focusing on fixed deals – around 69% of brokers say first-time buyer and remortgage clients are applying for short-term fixed deals while 27% say clients are looking for longer term fixed rates. Just 22% of brokers say clients believe rates will be cut or stay where they are for the foreseeable future.
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Ian Gibbons, Senior Mortgage Broking Manager at Nottingham Mortgage Services (part of The Nottingham),said: “The ongoing mortgage rate war among leading lenders has seen the launch of a range of low rates.
“The best deals do not tell the whole story of course as deals vary depending on how much equity homeowners have or how big a deposit they can find. But the trend in the past two years has been down and there are potentially substantial savings to be made.
“Customers need to be able to search the whole market and to look for as wide a range of deals as possible before making a decision on their next mortgage deal which means getting expert help.”
The goal of Nottingham Mortgage Services is to find the best mortgage deal for customers by offering a fee-free service that searches over 50 lenders. From first-time buyer mortgages, re-mortgages through to mortgages for house purchases and buy-to-lets, it has been successfully helping people find the right deal on their mortgages for a number of years. Its expert advisers search the whole of the mortgage market, looking for the best deals. They explain the costs and benefits of each mortgage and will only recommend a mortgage that is right for the customer.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some buy-to-let mortgages.
For more information about Nottingham Mortgage Services call 0344 481 0013, visit a branch or go to www.thenottingham.com/mortgages.