The latest figures from LMS conveyancing experts (cited in a March 2017 PropertyReporter.co.uk article) reveal that between December 2016 and January 2017, the number of people remortgaging rose by 10% from 27,700 to 30,439.
In January, the number of people who switched mortgages was the highest since February 2009.
Five-year fixed-rate deals are the most popular types of mortgage, and are increasingly being preferred over two-year fixed-rate mortgages.
Nearly 70% of people remortgaging used a mortgage broker. This compares with 57% who used a broker in December 2016.
Nearly nine out of ten (87%) people switched mortgages to one with lower interest rates. Following mortgage interest rate decreases in January, many people switched mortgages to save money on their monthly repayments. Many people remortgaged after following advice from brokers and financial advisers.
A minority of people (22%) switched mortgages to release equity so that they could pay for home improvements.
The chief executive of LMS, Andy Kee said:
“When remortgaging in January, homeowners weren’t solely looking for good value but also seeking long-term security, hence the increasing popularity of fixed five-year deals.
“Almost half (45%) of remortgagors in January now expect interest rates to increase in the next year so homeowners would be smart to remortgage now – before it’s too late.”
Mortgage brokers can find the best low interest mortgage deals. They can also arrange mortgage protection and income protection insurance that will pay the mortgage repayments if the borrower cannot work because of sickness, illness or injury.