April was quite the month for remortgage activity as those who searched out the mortgage lending tool mainly sought out a five year deal. According to the latest data from LMS, almost 50% of the total of all remortgage activity during the month of April was 5 year deals. This is a six month high. In the month prior, only 36% of the entire remortgage market was made up of 5 year deals.

Lenders catering to those who possessed maturing 2-year deals offered longer term deals and demand surged during the month.

Nick Chadbourne, chief executive of LMS, commented on the latest data regarding remortgage popularity, saying: “The popularity of 5-year fixed rate deals rebounded in April, having dipped in the first three months of the year. Lenders are eager to attract longer-term business which has created a competitive landscape for customers.”

Chadbourne added: “5-year fixed rate remortgages will always be popular when borrowers are seeking financial security. Many consumers are now opting for these deals to ensure they have certainty and stability through the potential economic and political upheaval of the next few years.”

With uncertainty hovering over the housing market, many house owners are looking for a method to secure an interest rate without the stress and fear of a potential rate hike affecting their interest rate and increasing the payment amount of a monthly mortgage.

A fixed interest rate remortgage secures an interest rate and provides absolute resistance to the possibility of change, thus providing a level of insurance against the possibility of an increase in the monthly repayment amount.