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Borrowers are taking advantage of competitive mortgage deals ahead of the biggest maturity period in five years, data from CACI has shown.
In September and October more than £35bn worth of mortgages are due to mature, 70% of which came from intermediary business.
Many borrowers could see a significant reduction in their monthly repayments thanks to a favourable shift in house prices and interest rates.
Skipton Building Society has cut interest-only rates at 60% and 70% loan-to-value.
To 60% LTV the lender’s 2-year fix stands at 1.69% after a reduction of 0.10% and its 5-year fix costs 2.15% after being cut by 0.09%. Both products come with no completion fee.
To 70% LTV 2-year fixes cost 1.79% with no fee and 1.43% with a £1,495 fee.
Some 21% of brokers think the base rate will be increased by the end of 2017, according to a broker sentiment poll carried out by United Trust Bank.
However, a majority of 76% believe there’ll be no increase in 2017.
The results come following the revelation that the Bank of England’s Monetary Policy Committee (MPC) voted 6-2 in favour of keeping the Base Rate at 0.25%. The Base Rate has now been at 0.25% for a full year since being reduced shortly after the EU referendum.
The average price of a home in the UK went up by nearly £2,000 to £223,000 in June, according to official figures from the Office of National Statistics.
The biggest change of anywhere in the UK was in Orkney where the average price is 28 per cent higher than a year ago at £148,000.
The average annual rate of increase is running at 4.9 per cent, down from 5 per cent in May, while prices rose 0.8 per cent between May and June.