The shock Brexit decision had a significant impact on a number of financial products. Remortgages were one of many products to be initially subdued, only to bounce back in what has been described as ‘spectacular style’.
According to the latest data from conveyancing firm LMS, the value of remortgage lending rose by 23 percent in October to £6.8bn, recovering from September’s post-Brexit low of £5.5bn. This made the value of remortgages in October the highest it has been since November 2008, representing a 19 percent rise on the £5.7bn of remortgages that took place at the same time last year.
What is sparking the remortgage revival?
The surge in remortgage lending is the result of a number of convergent factors. This includes the record-low interest rates, which are prompting homeowners to change their mortgage rates now before any possible rate rises next year. A survey by LMS found that 23 percent of those who remortgaged in October expect to see a rate rise in the New Year.
The political and economic uncertainty caused by the Brexit vote has also caused people to seek security, with many choosing to fix their monthly repayments before the Brexit negotiations begin. There is also a seasonal aspect to the remortgage rise. In the run-up to Christmas, many families typically look to make savings to reduce their monthly outgoings as budgets become strained.
Is now the time to review your mortgage?
There are many reasons why you might choose to remortgage. You may:
- Have come to the end of your current deal
- Want a better rate
- Want to borrow more
- Own a property that has increased in value
- Want to overpay and your current lender will not let you
- Want to switch from an interest-only to a repayment mortgage
- Be worried about interest rates going up
Whatever the reason, now is a great time to shop around for a new deal. With some analysts predicting interest rates rising in 2017, and with two-year fixed deals at just over one percent, you could find a deal that may save you hundreds or even thousands of pounds on the cost of your mortgage. As well as looking for the cheapest rate, homeowners should also factor in the overall cost including items such as fees into their decision.
Get in touch with the team at The Mortgage Centres if you’re looking to remortgage, we research the whole of the market to find you the right deal.