The most recent figures from the Bank of England Money and Credit statistics show that in November 2016, remortgage approvals reached record levels of 45,683, which is the highest recorded figure since October 2008.
The data published by the Bank of England highlights that considerable savings could be made by switching to a cheaper mortgage rate. People on standard or variable interest rates, who are coming to the end of their mortgage term, may lose out if they do not consider switching.
According to the website Business Mole, 25% of homeowners are planning to remortgage in January 2017. Average savings through switching to lower rates are around £49 a month, but can be considerably more.
JAMS are defined as homeowners who can just about cover their monthly expenses but without saving money. Business Mole reports that 33% of JAMs plan to remortgage in 2017, but 88% of JAMS say that their main reason for remortgaging is to save money by finding a low fixed rate mortgage offer.
Not everyone may be remortgaging to save money. Many are doing so to release equity on their homes and plan to use the extra money for such things as holidays, renovations or a new car. Some borrowers decide to increase their mortgage repayments in return for a larger cash sum to spend.
The number of mortgages for first time homebuyers has also increased, but there has been a slowdown in commercial mortgages for buy to let property because of changes in tax and new mortgage affordability rules.