13 June 2011
Can you fix it?
- 29% of people would 'fix' if they had to remortgage today
- Average cost of remortgaging estimated at £532
- 6% would get into debt to meet remortgaging costs
- Saffron offers fee free mortgages until 31 July
Almost a third of Britons (29%) would fix their mortgage if they were taking out a new mortgage today because they feel rates will rise soon according to research* from Saffron Building Society - the regional building society serving East Anglia.
Only 11% say that they would take out a tracker mortgage as they believe a rate rise will not happen in the near future, while over half (53%) admit that they just don't know what to do.
With the country's finest economic experts often producing conflicting views as to when rates will finally move it is no surprise that Britons are confused about the mortgage market - and this confusion doesn't end here.
Despite over 90,000 people remortgaging in the first quarter of 2011, when asked to guess the application fees they would need to pay for a new mortgage, over half (55%) of Britons said they would have no idea, while of those 45% who did estimate a cost, the average amount was £532. According to the latest data by data provider Moneyfacts the average application fee is actually £957 - with some fees rising to up to £2000 in total.
Worryingly, in order to meet the costs of taking out a new mortgage 6% would use credit, or borrow from family members. Twenty eight percent would add the costs to their new mortgage.
To help mortgage borrowers Saffron Building Society is providing help for those who are daunted by the cost of remortgaging by offering its remortgage products with no arrangement, application, valuation or legal fees**.
This offer is available immediately to new and existing customers in Saffron's branch catchment areas. The remortgages must be arranged direct and include Saffron's range of Tracker, Fixed Rate and Discount mortgages. Further details can be found at www.saffronbs.co.uk/mortgages/fee-free-mortgages.
Andy Golding, chief executive of Saffron Building Society, said: "Borrowers clearly expect that a rate rise is on the cards sooner rather than later - and for those who have been taking advantage of a low SVR this could mean it is time to start considering their options. We know that remortgaging can be expensive, so at Saffron we are giving borrowers a real financial boost by offering a fee free remortgaging service."
*Opinium Research study of 2,051 adults (aged 18+) between 20 and 23 May 2011.
**Fee free is: No arrangement fee and application fee. No standard valuation fee, as required by us to process your mortgage application and only up to £500, we will only cover the cost of one valuation. No legal fees if you use our panel solicitor. If any additional legal work is required, not usually associated with a remortgage, you will be responsible for the cost and will be advised by our solicitor.
Early repayment charges may apply.Your existing lender may levy a charge for switching. Only available for remortgages in Saffron Building Society branch catchment area and existing mortgage customers.
These are limited offers and Saffron Building Society reserves the right to withdraw product offers.
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