Borrowers with mortgages maturing in December could save over £100 on their monthly repayments if they remortgaged, according to analysis by Leeds Building Society.
December is due to be the biggest single month in the UK in 2020 for residential maturities, industry data suggests. This is because nearly 170,000 mortgage accounts come to the end of their current deal, with outstanding balances totalling over £25 billion.
Now Leeds is advising those borrowers that by switching to another deal and taking advantage of low interest rates at the moment, they could reduce their repayments.
Matt Bartle, director of products at Leeds Building Society, said: “In recent years we have seen mortgage rates reduce significantly, so many borrowers coming to the end of their fixed terms will be able to access lower rates.
“As December is the biggest month for mortgage maturities in 2020, with almost 170,000 accounts reaching the end of existing deals, these borrowers should be able to reduce their monthly payments by remortgaging to a new deal.”
Leeds Building Society has refreshed its product range and added two no-fee two year fixed rate mortgages, available for borrowers who need to borrow up to 75% of the property’s value – in other words, those with at least 25% equity in their homes.
The deals, available from Thursday 26 November, could save borrowers significant sums when compared with the market average reversion rate. They each come with a free standard valuation, fees assisted legal services and rates starting at 1.79%.
The building society said a homeowners with the average outstanding capital could save more than £1,200 a year by making use of the Society’s no-fee fixed rate deals rather than just defaulting to their lender’s standard variable rate.
However, you can also speak to a broker to see what other deals are available with similar terms and rates.
Bartle added: “By actively taking the time to look for a new deal, customers have the chance to reduce their monthly outgoings.
“Alternatively, if they chose a new deal at a lower rate and carried on repaying each month at their previous level, they could shave months or more off the life of their mortgage and save that way.
“We’ve used our experience and expertise to refresh our range and add new two year deals to our no-fee product range, as we continue to meet the needs of borrowers and help more people have the home they want.”
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