Increase in remortgaging due to Brexit uncertainty
Remortgaging has now reached a near-decade high, with many deciding to refinance to lock in low-interest rate loans due to concerns about Brexit.
The popularity of remortgaging
It has been revealed indata published by?UK Finance, which represents the UK’s mortgage lenders, homeowners across the country remortgaged loans in October 2018 to the value of a staggering 9.2 billion.This represents the highest monthly total since 2008, when the remortgaging value had reached 9.3 billion.Equally, the number of remortgaged loans also hit a 10-year high at 50, 500 in 2018, when the last highest amount recorded was 68, 500.
Why is remortgaging at a 10-year high?
According to leading figures in the property finance sector, one of the main reasons remortgaging has regained popularity is a very competitive market, which is encouraging homeowners to lock in to low-interest deals.The market has become more competitive of late due to a high number of fixed-rate mortgages also coming to an end at around the same time, meaning many property owners have been searching for a new deal.This has come as a surprise to some, who believe lenders would be less willing to compete with each other to offer the cheapest rate amidst the ongoing uncertainty caused by Brexit.
Growth in the remortgage market
Many analysts have noted that the remortgage market has grown rapidly in the past few years, which has filled a void for mortgage lenders in the wake of a stagnating housing market.In addition, the increasing likelihood of rising interest rates has led homeowners to rush to sign up to new fixed-rate or other kinds of discounted remortgage deals before this occurs.
Interest rates not the only thing that drive remortgage growth