Remortgages have been in demand from homeowners as they continue to see low interest rate remortgages offered by lenders.  The growing equity being seen due to rising house prices is also a factor as is continued confidence growth in the economy.  The trend is expected to continue as homeowners seek the lowest interest rate they can find on the market from lenders offering cheap remortgage deals.

According to chartered surveyors Connells Survey & Valuation, over the last twelve months to March remortgaging increased 35%.  Between January and February there was an 18% increase in remortgage demand.  The total number of valuations the chartered surveyors reported amounted to a 21% increase for a month-on-month comparison.

John Bagshaw, Corporate Services Director with Connells Survey & Valuation, said, “We are expecting further good news on the economy when official forecasts from the OBR are released later this week.  At the same time, the Chancellor will want to make plenty of political capital out of any other improvements he can announce on Wednesday afternoon.  But as more good news rolls in, expectations about the likely timing of an interest rate hike may change, too.  It’s likely that forecasts will start to predict an earlier rise, which will increase the cost of mortgages.

“Household budgets are still recovering from the last half decade of wage freezes and economic stagnation.  Remortgages are making up a large part of the market as people struggle to make budgets add up – they’re remortgaging to keep monthly payments down.  As the likelihood of an impending interest rate hike increases, so will the number of homeowners looking to remortgage as they try to ensure they will still be able to pay the bills in the future.

“We expect double-digit growth to be the norm for some time, as the property industry continues to thrive throughout 2014.  But, even at this blistering pace, there is still a long way to go before the backlog of remortgagors, first time buyers, and homeowners who haven’t been able to move is finally cleared.”