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April’s ‘significant peak’ in mortgage maturities presents opportunity for brokers

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  • 08/01/2020
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April’s ‘significant peak’ in mortgage maturities presents opportunity for brokers
Mortgage brokers will be bracing themselves for the second biggest month for mortgage maturities this year in April when £21bn of loans mature.

 

The value of mortgages due to mature this April will account for 11 per cent of the £184bn of mortgage maturities in 2020, according to consultancy firm CACI.

The biggest month for remortgages is December when £25.6bn worth of mortgages are slated to mature.

April’s mortgage maturities are also worth 52 per cent more than the average monthly maturity value this year across the other 10 months, excluding April and December, of £13.8bn.

Both April and December’s value of maturities are significantly higher than last year; an increase of 14 per cent and 70 per cent respectively.

Households with mortgages that mature in April will have an average outstanding balance of £149,736 with 19 years left remaining on their term.

Martese Carton (pictured), Leeds Building Society’s head of intermediary distribution, said: “April is the first significant peak of mortgage maturities in 2020. As such, it represents a clear opportunity for brokers to help homeowners remortgage to a better deal while rates remain at historic lows.

“Almost 140,000 mortgages will be maturing in April 2020 and these borrowers should be able to reduce their monthly payments significantly by remortgaging.”

CACI provides retail finance market benchmarking and counts among its members many of the UK’s leading mortgage lenders, including Barclays, Clydesdale & Yorkshire Banking Group, HSBC, Lloyds Banking Group, Nationwide Building Society and Skipton Building Society.

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