Rate rises behind remortgage advice searches

Rate rises behind remortgage advice searches

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Searches for remortgage advice increased to 35% of all whole of market mortgage enquiries in May 2012, compared to 30% in April and 30% in the same period last year, according to unbiased.co.uk’s Advice Drivers report.

Interest in first time buying advice fell from 39% in April to 38% in May, but still is the leading advice driver on unbiased.co.uk’s mortgage adviser search.

Buy-to-let advice has increased from 19% in April to 21% in May, and the number of searches are 1% above average compared to monthly numbers of enquiries over the last 12 months.

“It comes as little surprise that the recent rate rises by lenders have driven a renewed interest in searches for remortgage advice as consumers contemplate switching to a better deal in an attempt to save money,” said Karen Barrett, chief executive of unbiased.co.uk.

“We have already seen a number of lenders including Halifax, Bank of Ireland, Yorkshire and Clydesdale Banks, RBS and Co-operative Bank increase their standard variable rates, leaving over a million borrowers with higher mortgage payments.

“Although current mortgage rates are still significantly lower than they were five years ago, a small percentage tweak here or there can make a big difference to your overall expenditure. The prospect of more mortgage rate price hikes on the horizon is also a concern, particularly as the window of opportunity to switch to a cheaper deal may be closing fast.”