Although fees are still high for most loans, it does appear as though cheap loans may be returning in the near future. Many banks are starting to get competitive again, and if they do, consumers will definitely be the ones to win thanks to cheap loan rates that are much easier to afford. While these cheap loans may not be available for a few more months, there is hope on the horizon that they will return. For many, this cannot happen too soon.
‘Some daylight has opened up for homeowners in the last few weeks and there is now a much bigger margin between the cheapest rates and lenders’ standard variable rates [the rate you revert to if you don’t remortgage], so those who were thinking of waiting will now want to re-look at remortgaging,’ says David Hollingworth of mortgage brokers London & Country.
‘The danger is that people become indecisive in this market as they wait and see what happens with rates,’ he says. ‘Homeowners shouldn’t forget that it was only in June that rates suddenly spiked by half a per cent, which shows how volatile the current market is,” he added.
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