The Remortgage Surge – Is Now The Time?
12th August 2015
The latest report from the Council of Mortgage Lenders showed a few interesting things this month, not least the fact that remortgages seem to be enjoying something of a renaissance.
They have found that remortgage activity increased by over a third both month-on-month and year-to-year, with 31,600 remortgage loans taking place in June.
Over the second quarter as a whole, the remortgage market increased by 8.6% on the previous quarter.
They also reported that lending for house purchases went up 22% in June, whilst Buy To Let has also continued to increase, also boosted mainly by landlords looking to remortgage.
All of this shows that the penny seems to be dropping for many borrowers that the current low rate environment will not last forever and we have seen a surge in the number of borrowers finally making a move to lock in to some of the low rates available now.
Whilst recent comments from the Bank of England about potential rate rises have been tempered somewhat in the past few days, what has become clearer is that the whole discussion on the timing of the next upward move is becoming much more finely balanced.
This has affected the pricing of rates but whilst there have already been some increases from lenders, there is still intense competitive pressure amongst mortgage lenders to hit the stiff targets they set at the beginning of the year.
This means that we expect that there will still be some excellent products available from lenders for the remainder of the year.
That said, as we do get closer to inevitable rises these deals will start to disappear, so prospective borrowers should act sooner rather than later.
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Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.