Remortgagors turn to Intermediaries
Two-fifths of remortgagors (44%) turned to an intermediary in April, up from 39% in March and 36% in April.
Less than half (47%) remortgaged because they were coming to the end of a deal, down from 49% in March and 52% in February.
Loyalty to lenders seems a thing of the past, as eight in 10 (79%) remortgaging borrowers switched lenders to get a better deal.
Andy Knee, chief executive of LMS, said: “The stringent lending criteria imposed by the Mortgage Market Review last year has driven more people to use the expert advice provided by specialist intermediaries to help them navigate the mortgage maze.
“Finding the best rate is only part of the battle, with brokers also able to help borrowers prepare for the more detailed checks and processes now required. As well as proving a useful resource for borrowers, brokers are also helping lenders handle increased levels of business.
“Fewer customers cited the end of their current deal as the reason behind remortgaging, which suggests they’re well aware of how to use their current deals to restructure and make the most of their finances.”
The majority (65%) of customers switched for lower mortgage rates, while a third (30%) wanted increase the size of their loan. Indeed, one in five increased their loan amount by more than £10,000.
The number of people who believe interest rates will rise fell to 15% in April, from 17% in March.