Remortgage on the rise - more people than ever remortgage their homes
Remortgage rates have hit a nine-year high, stats have revealed.
Loan approvals for remortgage peaked last November, just as borrowers were experiencing the first base rate rise in more than ten years, Bank of England figures show.
Some 53,922 remortgage loans were approved, the Bank's Money and Credit report said.
The number of mortgage approvals made to home buyers also edged up month-on-month in November, to 65,139, from 64,887 in October.
The Bank of England base rate was increased from 0.25 per cent to 0.5 per cent in early November - the first increase in more than 10 years.
The large number of remortgage loans in the latest figures suggests borrowers were seeking to protect themselves from further potential increases in interest rates.
Emma Hall, Head of Sales and GW property expert, comments:
“If everything continues as is, it looks like the property market is going to remain steady in 2018, which is excellent news for anyone wishing to buy, sell or remortgage in the new year.
“Remortgage can be a smart way to save money by locking in a great new rate, so I would encourage anyone considering this option to enlist the assistance of an experienced property solicitor sooner rather than later, to take advantage of the current market conditions.”
People usually decide to remortgage either to save money (by securing a lower rate of interest on the debt) or because they are moving to a different property. Others remortgage to release capital (or 'equity') from their property to pay for things such as home improvements or to pay off other debts.
Reasons to remortgage include:
· You’re on a standard variable rate and want to move onto a fixed rate deal so you can be certain of your monthly repayments
· To release equity in your home if it has gone up in value
· To fund home improvements
· Your current deal is about to end
· You want to borrow more money
· You want to switch from interest only to repayment mortgage.
· You have found a lower interest rate
· Your home’s value has gone up
· You’re wary of interest rates going up
Get in touch with the GW property team today by calling 0345 373 3737, emailing firstname.lastname@example.org or filling out our online enquiry form.
Content correct at time of publication.