Remortgaging on the increase
The number of people considering remortgaging has been rising consistently over the last three years and is up by 10 per cent since last year – from 65 per cent twelve months ago.
The survey also revealed the majority of homeowners considering remortgaging would look to reinvest any extra money back into property, either through home improvements to their existing houses (30.6 per cent), or to help fund further property investments (38.7 per cent). Just under one in ten plan to spend the money on a car or a holiday.
Nick Clark, managing director of The Homebuyer Show, commented: “Shopping around for a better deal on your mortgage has become increasingly common for both homeowners and professional investors. Increasing levels of debt have had a knock-on effect on the industry, with owners realising they don’t have to stick with their current provider once the initial special offer period has run out.
“Lenders often bring out attractive deals for new borrowers but leave existing borrowers paying higher interest rates. By swapping to a more competitive mortgage deal homeowners can decrease their monthly repayments, and even release some capital to reinvest or to fund home improvements. Locking into a fixed rate deal at a time when rates are historically low can also provide reassurance for the future.”