Remortgage activity is currently bustling and the slowdown looks like it will not happen anytime soon. With a potential May interest rate increase just around the corner, many house owners are seeking relief in the cost of the monthly mortgage before rates finally go up. Many experts predict this might not be the only rate rise for the year 2018. Although activity is buzzing, the type of remortgage obtained is not in line with recent trends. During the month of February, two year remortgage deals were sought out in higher frequency than five year deals. This trend is taking a turn not seen at this level since July.

The month of January this year posted a much higher percentage of those seeking five year lending deals compared with February. The first month of the year saw 45% of the entire lending market obtain a five year deal compared with only 37% in the month of February, according to LMS. Two year deals are less expensive and are catching many eyes of home owners looking for a way to balance out the rate rise which took place in November of last year.

Nick Chadbourne of LMS commented on the latest lending data, saying: “Consumer interest in fixed five-year deals has dipped as many borrowers opt for the lower rates on offer from two-year products. This is a significant shift from what we’ve seen in recent months, suggesting the popularity of five-year deals may have peaked.”

Remortgage activity is expected to remain strong through many months of this year as home owners seek methods of protection against possible rate hikes in the future.