Homeowners are being warned off rushing into long-term fixed rate deals amidst the recent remortgage surge, Choice Finance has said.

New figures show that the popularity of remortgaging has hit its highest point in almost ten years but Choice Finance said homeowners should discuss with a broker how they can best take advantage of the current climate and reduce outgoings.

“People are swarming to lock in five-year fixed rate deals, which has fallen to a record low to 2.77 per cent in a bit to beat a rise in base rates, which many predict must happen soon,” the firm said.

“Combine this with a stagnant housing market, choosing to stay put for the moment and remortgage is proving more appealing than selling up and moving on. While some homeowners may be remortgaging for long-term security as opposed to cutting monthly costs, it is clear that when it comes to any type of mortgage, one size certainly doesn’t fit all. Consumers can spend hours trawling the internet and still not find the very best deal, which is where brokers come in.”

Choice Finance managing director Matthew Pennell said: “There will be a lot of pressure at the moment to act quickly, but a hasty decision when it comes to finance is never a wise move.

“When people come to us looking to remortgage, we look at the whole picture- where they are, where they want to be and all the fine details in between. From that point, we can guide people in the right direction. We would never advise to jumping into a five-year fixed rate deal with both feet without really considering the long-term implications.”

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