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A recent study into the UK mortgage market has found that in nearly nine out of ten cases it is more prudent to remortgage than it is to stick to your standard variable rate.

According to Moneysupermarket.com, because a number of building societies are increasing their SVRs, many borrowers who are sat on default deals would be wise to consider switching, especially as other lenders are expected to increase their SVR rates.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, says: "Most borrowers on SVR had been enjoying a better rate than that on offer to new borrowers and the increasing of loan to value criteria meant people couldn't remortgage anyway. But over the last month or so we've seen the market shift."

SVRs have increased, rates for new borrowers have been falling and mortgages at higher LTVs are now becoming more common and more accessible. It's official – the remortgage market is open for business once again.

Moneysupermarket.com figures show that the best two year fixed rate mortgage right now is a 3.29% deal with a £998 fee. Taking into account the initial arrangement fee, the actual cost of this mortgage would be have an equivalent rate of 3.8% after two years, which is only beaten by 13 out of 85 SVR deals on the market.

Skenfield says: "These figures really show that for many people, now is the time to switch. The prospect of an arrangement fee can be off putting, however, our analysis shows that the vast majority of SVR deals do not compete with the top fixed rates.

"Taking time to work through the sums involved when deciding whether or not to fix your mortgage is crucial. Fixed rates aren't likely to get much lower in the near future, so the quicker you act the better."

If you want to be sure that the sums are right and all mortgages have been compared with your SVR, talk to a mortgage broker. they are the number one source for the best mortgage advice and you can be sure that they will be able to find you the best deal for you from the whole of the UK mortgage market.

SOURCE: Moneysupermarket.com, 08/02/10

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If you have spent your life listening to your bank it might be time for a change in 2010 – get your financial advice from someone impartial from here on in.

Banks have had a tough year – as well as being blamed for getting us into this economic mess and taking billions of pounds of taxpayers' money the banks have also come under heavy fire for continuing to pay their executives massive bonuses. As a result, trust has been lost in the UK banking sector. According to Which?, over three-quarters of people say that rebuilding customer trust should be a New Year's resolution for banks.

But at the same time the consumer magazine found that over half of people who have made New Year's resolutions this year have made money-related ones, with over two-fifths making more money-related resolutions than this time last year – people want to do more with their money, they want to be able to save more and spend less, but they don't trust their banks.

Peter Vicary-Smith, chief executive of Which? says: "Ordinary people are still feeling the repercussions of the financial crisis yet their voice has so far been missing from the debate about how to rebuild our banking system."

The simple solution for those who want to do more with their money in 2010 but feel like banks have let them down is for them to take their financial business to a financial adviser instead of their local bank branch. By talking to a financial adviser instead of a bank you are guaranteed an impartial service and you are guaranteed access to all the financial products out there on the market, not just those offered by your bank. You are also sending a message to your bank that tells them that they let you down.

So ditch your bank's advice and talk to an independent professional instead. While the banks have taken billions, financial advisers have only helped people save money. They do need to sell financial products and they do not have to meet monthly targets and deadlines – their only target is to make sure that your finances work as well as they can.

SOURCE: Which?, 08/01/10

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The new year is bringing a fresh bout of confidence to Brits as more people think house prices will rise over the first half of the year.

According to Zoopla.co.uk, four out of five UK homeowners believe that property values are set to rise over the first half of 2010. It says this is a marked turnaround from just one year ago when only one in five homeowners was optimistic about the house price outlook.

The average growth predicted amongst those surveyed by the website is for house prices in their area to increase 5.4% over the next six months whilst they expect their own home value to rise by 5.7% over the same period.

Although people think their home will increase in value, 75% of those surveyed claim that it is no easier now to get a mortgage than three months ago, placing the onus on lenders to work to increase confidence and help further lift the transaction volumes.

Nicholas Leeming, commercial director of Zoopla.co.uk, says: “This time last year, confidence in the property market was at rock bottom and the outlook was bleak. But, a year is a long time in the housing market and, whilst the recovery is still in its infancy, optimism is now back to levels not seen since the credit crunch began in 2007.

"The shortage of homes for sale has prevented any improvement in transaction levels over recent months but with increased confidence amongst owners about putting their homes on the market to match the pent-up demand from buyers, we could see a welcome boost to the recovery of the housing market.”

Confidence goes a long way when it comes to the housing market, but it can't actually help you move up the property ladder. If you want to make sure your housing market confidence turns into housing market success, talk to a mortgage adviser about getting hold of the right home loan.

SOURCE: Zoopla.co.uk, 05/01/10

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The total amount lent to mortgage borrowers in October rocketed by 5% as more lenders offered more mortgages to more people.

According to the Council of Mortgage Lenders, October gross mortgage lending was an estimated £13.5bn, a 5% rise from £12.9bn in September. Admittedly, it was down 27% on £18.5bn in October 2008 but 5% is a big rise in a year when mortgage lending was truly in the doldrums.

The CML says this October outcome was in line with its forecast for gross lending of around £141bn for 2009 as a whole. It is confident that more will be lent in 2010 as more lenders begin easing criteria and house prices slowly continue to rise.

Paul Samter, economist at the CML says: "There has been a significant change in the type of lending taking place from the start of the year. House purchase activity has picked up significantly. In contrast, remortgaging has dropped to decade-low levels as many borrowers have little incentive to refinance when they move onto low reversion rates, and others find themselves unable to do so due to equity constraints.The coming months are likely to be dominated by seasonal factors rather than underlying change."

Susan Barclay, head of marketing at Scottish Provident says: "It is great to see that confidence is continuing to creep back into the UK mortgage market. However, in the excitement of securing their loan it is vital that borrowers do not leave themselves unprotected.

"This doesn't just mean taking out life cover, it is also important to protect against the financial impact of a serious illness especially as recent research shows that only 20% of those homeowners questioned have a critical illness plan. We urge anybody taking out a home loan to seek financial advice to avoid putting themselves and their loved ones at risk in the event the worst happens."

SOURCE: CML, Scottish Provident, 19/11/09

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Because of the continuing low rate environment, a new study has found that there are nine new mortgages for every remortgage in the UK right now.

Figures from the estate agent Spicerhaart found that 89% of mortgages approved in August were for purchases with just 11% going to remortgages.

The Bank of England base rate is at just 0.5% and many predict this will continue for months and years. As a result, tracker and variable rates have sunk to new lows, and any holders of these type of loans will not want to move.

Steve Cox, operations director of Spicerhaart Financial Services, says regardless of the type of mortgage, any approvals are good news: “The upward trend for house purchase loans is extremely encouraging and shows that people will continue to move despite the current climate."

While there is nothing wrong with sticking with a variable rate loan, a good mortgage borrower has to look to the long term – there are still reasonable fixed rates on the market, and even for those on their lender's standard variable rate a tracker might be a good bet in the long run.

If you are unsure as to what is your best mortgage option, talk to your mortgage adviser. It might be that the lender's SVR is the best option, but you might find that a remortgage will save you money over the long-term. Waiting and hoping that rates stay low forever is a bad idea – if the Bank decides to increase rates, SVRs will rise very quickly and borrowers will suffer an almighty rate shock. So act now, before it's too late.

SOURCE: SpicerHaart, 06/10/09

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