A massive rise in remortgaging is expected over the next six months, according to new bank figures.
Santander Mortgage's Remo Index has estimated that there could be 4,848 potential remortgages every day until July by UK homeowners on tracker or fixed rate mortgages.
The bank predicts that tracker deals will be the least popular – only 13 per cent of homeowners due to remortgage have said they will take the deal compared to 33 per cent two months ago.
Phil Cliff, director of mortgage marketing at Santander UK said: "Borrowers have seen a large number of highly competitive fixed deals come on to the market recently and with many commentators predicting a base rate rise this year, homeowners now seem more inclined to play it safe with a fixed rate deal."
Factors likely to influence homeowners are good rates (51 per cent), the choice of whether to make under or overpayments (nine per cent) and speculation that the Bank of England's base rate will go up (six per cent).
Santander recently announced a series of cuts of up to 0.5 per cent on some of its mortgage rates, as part of Abbey's transition to Santander. Alliance & Leicester rates are likely to remain the same.
See Also: Property News (6699)
Date Published: 22 January 2010
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