The latest data from LMS revealed homeowners that remortgaged were big savers with the opportunity to get a lower interest rate deal. Those homeowners that chose to remortgage in July saw their monthly repayments decline by an average of £200.76. The most popular remortgage product for remortgaging borrowers was a five year fixed rate deal. 

Homeowners will likely find current remortgage offers are associated with lower interest rates in comparison to what they were offered two or more years ago. Those with their mortgage terms coming to an end are encouraged to shop around beyond their current lender to discover the best savings available in a remortgage. 

In response to the data report on remortgaging, Nick Chadbourne, Chief Executive of LMS remarked, 

“July’s data illustrates that the landscape has changed and the remortgage market continues to evolve. Consumer behaviours have inevitably altered in response to the pandemic, with 1 in 6 borrowers reportedly taking a mortgage payment holiday.

“However, completion volumes nearly doubled from June to July, as many people look for security and certainty in their personal finances. This, combined with higher rates of conversion and decreasing instruction volumes, has resulted in a reduced pipeline heading into August.

“5-year fixes are rising again following the initial drop we saw in April, which isn’t surprising as borrowers look to lock in longer term deals with interest rates at all-time lows. Nearly three quarters of borrowers reported their motivations for remortgaging coming from a need for monthly payment security, which is a strong indicator of borrower behaviour. With the full effects of COVID-19 on the housing market unknown, we expect this trend to continue as borrowers look for certainty in their monthly outgoings.”