Homeowners have been busy seeking remortgaging opportunities to save money. For many of them, a remortgage could offer a substantial savings, especially when compared to the interest rate some would have to pay if they didn’t remortgage and were moved to their lender’s standard variable rate (SVR) when their current deal ended. Experts have reported that some homeowners that mortgaged or remortgaged two or more years ago would face an interest rate double or more with a SVR.

According to the latest information from LMS, 52,869 remortgages were completed in July. This was a decline from the 53,516 recorded for June. The average monthly payment decrease achieved for homeowners due to remortgaging amounted to £209.79 in July.

Very few homeowners were keen to get a remortgage as a variable or tracker rate and instead the majority sought out fixed rate remortgages. Of those that remortgaged in July, 42% reduced their repayments.

Data revealed that 67% of the borrowers took advice from brokers when considering and choosing a remortgage deal.

Nick Chadbourne, LMS chief executive officer, remarked, “We’ve seen five year fixes grow in popularity for some time now. This month saw the highest number recorded, with half of borrowers choosing to fix for this length of term. In previous years, two year fixes were the norm, but now only a third of borrowers choose this length as they opt for longer terms.

“This is likely to be a reflection of wider market uncertainty and borrowers wanting to take control of their mortgage payments for a longer period of time. Similar to last month, it’s good to see brokers were a significant force behind this, with 67% of borrowers choosing to remortgage on the advice of their mortgage broker.”