Remortgage lending, though representing a large part of overall mortgage lending, is still not as in high demand as expected. There are many reasons that homeowners should be rushing to lenders and grabbing a remortgage. However, since homeowners aren’t shopping as expected, then they are either confident that higher interest rates won’t impact their home budget, they don’t mind paying more in their repayments than needed, or they simply aren’t aware of how a remortgage could help.

Remortgage activity has taken off in recent years, and this year is no exception. Across the country, remortgage reached a new level in the month of January as an eight year high was achieved. More than 50,000 remortgage transactions were processed during the first month of the year with another 35,000 transactions in February. This activity took place several months prior to an expected increase in interest rates in May which never occurred. Remortgage continues to dominate as the highest percentage of mortgage lending within most lending institutions.

Remortgage has surged this year as a predominant percentage of countless lender total lending. Across the country, house owners are finding the benefits of remortgage hard to turn away from and not take advantage of. Low interest rates, heavy lender competition, and wage growth which still lags in many parts of the UK have created an environment quite conducive to remortgage for millions of people. London has now posted some impressive figures of its own. During Q1 of this year, the capital city saw £4.67bn in homeowner remortgage.

Homeowners could be missing out on a lot of money. By not remortgaging when possible, they are essentially paying higher repayment amounts than necessary. Not only are those that have let their mortgage deal without remortgaging missing out on savings, so are those that could choose to remortgage early despite paying a fee to do so.

Homeowners navigating their way through the difficult-to-understand world of mortgage lending are not alone. There are numerous terms to understand during the process whether it is the first time buying a house or the fifth time. Professionals along the way can help guide and give advice, but ultimately the decision is in the hands of the one repaying the mortgage loan each month. Therefore, it is important to realise what could impact the monthly mortgage payment most of all. The one factor impacting a repayment amount each month will likely be interest rates.

Buying that first home is achievement of a major lifetime goal. Compiling enough for a down payment and then completing the mission of purchasing a home is not only a major win, but a dream of many who are starting out adult life. The purchasing process can be lengthy, stressful, and full of ups and downs. This is likely the reason many choose not to return to those days and rest once they obtain their first mortgage lending product. Saving money at any time is one thing which all homeowners desire. Visiting remortgage after the initial mortgage term ends should be part of every homeowners plan.