27
Sep
Record in homeowner remortgages set
The number of remortgage valuations conducted in August has reached
a record-high, according to the latest figures.
During the month 37 per cent of all valuations were for
remortgaging purposes, including the buy-to-let sector. This sector
has been growing steadily over the past decade, especially as rates
remain competitive.
Experts believe interest rates may be set to increase so this could
explain the increase in remortgaging activity as homeowners seek to
secure favourable long-term deals.
“Remortgaging is quickly becoming the dominant activity in
the lending market. The record high in August was driven by
consumers seeking out better value borrowing. Having benefited from
a decade of low interest rates, consumers are sensing the risk that
this era is nearing an end,” said John Bagshaw, corporate
services director of Connells Survey & Valuation,
“Many older mortgage deals are expiring this autumn which
will mean moving onto more expensive standard variable rates. As a
result, home owners on these deals are opting to refinance, taking
advantage of the intense competition in the mortgage market right
now,” he added.