Homeowners issued with advice on mortgages

Posted: 15 Oct 2009 12:31:52 GMT

A mortgage expert has given homeowners mortgage advice after figures from the Council of Mortgage Lenders (CML) revealed that remortgage levels have fallen.

>Peter O'Donovan, head of mortgages at Bestinvest, said lots of people with mortgages were sitting on rates between one and two per cent.

He explained that with the base rate unlikely to change any time soon, many homeowners "feel they are better off staying where they are".

Mr O'Donovan also suggested that until the base rate changes there will not be much mortgage movement among property owners.

"It is probably better off staying where they are on those low variable rates than adding one or two per cent to their mortgage payment," he remarked.

The number of remortgages taken out by homeowners decreased by 57 per cent this year, according to CML.

Mortgage approvals for the same period increased by 29 per cent.

This news comes after HSBC announced last week that it would be extending its two-year mortgage deal - which has a rate of 1.99 per cent - until the end of October.

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