Brokers expecting strong remortgage market

Brokers are expecting a buoyant remortgage market in the near future as millions of borrowers come to the end of their fixed-rate deals, it has been reported.

Estimates suggest that some two million borrowers will come to the end of their fixed-rate deals in the next two or three months, Citywire reports.

Despite the housing market recently going through a quieter period, with house price growth beginning to slow and inflation falling – reducing the likelihood of further rate rises – many borrowers are still expected to remortgage to keep their expenses down.

Richard Roberts of financial services firm Route Group told Citywire: "We have a lot of clients who are looking to remortgage and they are suffering shock at the rates they are going to have to pay.

"They cannot believe how much rates have gone up. I think the remortgage market will be very, very strong over the next few months because people will be focusing, well in advance of the end of their current deal, on getting a good rate."

One concern circulating in the market is that fixed-rate borrowers' financial situations could have deteriorated since their mortgage began, with interest rates having risen by 1.25 per cent since August 2006.

If this does prove to be the case, it could lead to many customers taking out bad credit mortgages after being declined a remortgage deal by mainstream lenders.

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