A quarter (23%) of remortgagors expect interest rates to rise in a year’s time, LMS research has found.
In October just 6% expected them to fall in the next year, down from 9% in September.
This expectation is reflected in the growing popularity of 5-year fixed rate mortgages, which accounted for 19% of mortgages that were switched in October.
Andy Knee chief executive of LMS, said: “The lead up to Christmas, low-rates and greater anticipation of a rate rise within the next year is the driving force behind the decision of many to remortgage now.
“Economic and political uncertainty spreading as a fall-out from the UK’s vote to leave the EU has affected people’s priorities. More people are looking for long-term security.
“They want to ensure they know exactly what they will owe and when, while the terms of Brexit are battled out.”
In October 89% of remortgagors were able to lower their mortgage rate.
Three in five (60%) were only driven to remortgage because they had come to the end of their current deal, while almost a quarter (23%) did so to lower their monthly repayment.