With interest rates at an all time low, many homeowners are remortgaging and capitalising on the record low mortgage rates to boost their finances.
Figures from LMS show that the value of remortgage lending rose by 23% in October – the highest rise in eight years. The rush by homeowners looking to take advantage of the lower rates has been partly fuelled by industry predictions that rates will rise next year.
Furthermore, remortgage applications are currently more successful – in the third quarter of the year, 80% of applications resulted in an offer, compared to 77% of applications that were successful in the second quarter of the year.
Switching to a lower interest rate could mean homeowners can pay off their mortgage early or reduce monthly repayments to receive an extra income boost. Lower rates could also be used to release equity to help children get on the property ladder, make home improvements, or pay off any debts.
Chief Executive of LMS, Andy Knee said: “There are several key driving forces behind this revival. Some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities. Record-low rates are providing the perfect opportunity for homeowners to remortgage and secure monthly savings on their mortgage bills.
Another factor is that homeowners are cautious of what the future may hold. Families are seeking long-term security, [and] some homeowners are locking in low rates and fixing their monthly repayments. But perhaps the most important factor is the current anticipation of a rate rise in 2017. LMS found that 23% of remortgagors in October expect a rate rise to occur in the New Year, which has convinced some homeowners that now is the time remortgage.”
It’s clear that now is a great time to remortgage, and if you can secure a low, fixed rate deal now, you could avoid being hit with the rise that industry experts predict will happen.
Whether you’re looking to sell, buy, rent or let, the Kingsley Hamilton Estates team can help. Give us a call today on 020 7078 0214, or email firstname.lastname@example.org.