Experian: Increasing number searching for remortgages

Michael Lloyd

October 30, 2019

Remortgages as a share of total searches on Experian’s comparison service has risen 5.3% in the last year with more looking to switch onto fixed rate products.

Experian’s monthly credit barometer showed that over a quarter (28.7%) of September’s mortgage searches via the service were for remortgages which is up from 23.4% last year.

Amir Goshtai, managing director of marketplace at Experian, said: “Last month we revealed that mortgage applications had increased by 9.8% year-on-year.

“Our latest mortgage findings suggest remortgages could be contributing to the rise in applications in the mortgage market as homeowners are increasingly locking in fixed deals amongst a backdrop of economic uncertainty.”

Some 91.3% selected a fixed monthly repayment option in September.

Only 5.6% searched for a variable interest rate type and 3.1% for a tracker last month.

Goshtai added: “With interest rates relatively low, a typical borrower could save up to almost £2,500 a year by switching to fixed monthly payments from a standard variable product.

“Fixed rate mortgages provide more certainty and security with outgoings.

“They also help to aid better planning and budgeting, especially at a time when many external economic factors remain unclear.”

The proportion of first-time buyer mortgage searches fell by 5.3%.

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