Remortgaging rises

FAMILIES are scrambling to lock in low mortgage costs amid fierce competition on the market and fears interest rates could rise.

A total of 50,500 homeowners remortgaged in October – the highest number for a decade.

A total of £9.2bn of mortgages were shifted, up 23pc on a year earlier. Fierce competition means deals are far cheaper than they have historically been, despite rises in the Bank of England base rate.

Someone with a £150,000 mortgage on a property worth £200,000 could get a five-year fixed rate from Barclays for as little as 1.97pc. This would cost £633 a month. Borrowers are rushing to lock in these rates while they are still available, amid fears that costs could rise. Experts said political turmoil in Westminster and fears of a chaotic no-deal Brexit have also triggered a rush to fix.

James Chidgey, of the Mortgage Advice Bureau, said: ‘This is partly the result of many lenders repricing over the last couple of months to offer exceptionally competitive products to tempt new customers.

‘This is benefiting consumers who are enjoying a significant window of opportunity, whether they are purchasing or remortgaging, to lock into an ultra-competitive rate.’

Meanwhile, 32,900 first-time buyers took out a mortgage, up 8.2pc from October 2017. They borrowed £5.5bn, up 12.2pc.