Remortgage

gadget88

So I checked how much I would be to remortgage and I’d only save £12 pounds. I don’t remortgage for 3 years but why has interest rates fallen so much but the rate remains 4.26%? I done the value of my house currently rather than what I paid for it. 

kingstreet

Mortgage rates are based on money market swaps, not base rate. They reflect what the market believes rates will be during the period of the fix you are considering - two, three five years etc.

Frankly, most people are worrying about how much their payments will increase rather than how much they will save as their current rates are a lot lower than those available today. For example, we have a client with a 1.79% expiring on 30 June and are unable to offer them anything under 4%.

Hoenir

BOE base rate has an influence on but does not set mortgage rates.  We've had a period of abnormally low interest rates. Now normality is returning.  Globally the cost of borrowing money has increased. Depositors have many choices as to who to lend their money to. Banks compete to obtain these funds.