The days following Brexit are being highlighted by fewer people purchasing houses, fewer houses being put on the market to sell, and fewer people in general making big decisions regarding the short term future of their housing. This has led to a slowdown in the speed of the UK economy overall. Remortgagors however are making use of low rates and subsequently lower monthly mortgage payments.

Those seeking a remortgage for their current residence and consulting a broker or advisor to do so increased 3% month on month, to 41% during the month of June. According to the LMS, this is the highest number seeking such direction since the last month of 2015.

Uncertainty in the market has prompted many to search out a remortgage and secure a lower interest rate for the future. Fixed rates for homeowners have become quite the popular financial tool.

Almost 40% of homeowners choosing to remortgage in June were able to cut their monthly mortgage payment by £500.

Andy Knee, Chief Executive of LMS, commented on the latest impact of Brexit, saying: “Although the effects of the UK’s vote to leave the EU are yet to be seen in the coming months following the referendum, there is already news across the board that business is maintaining traction, with minimal transactions falling through. This is fueled, no doubt, by an overwhelming shortage of housing in the UK and in big cities and is likely to keep demand up and the market ticking over.

“The low interest rates currently available are very positive for homeowners and speculation of the base rate being cut to 0.25% is increasing the supply of these offers. However, longer-term fixed products are becoming increasingly popular as homeowners look to stability in these turbulent times. The desire for greater security and assurance is also reflected by the increase in people using a broker to help guide them through the remortgage process.”

Knee added: “As Mark Carney cautions fresh mortgage borrowers to be prudent and think about long term affordability, it’s important to remind remortgagors to do the same. It may be smarter at this point to capture savings from remortgaging quickly by lowering rates and your repayment amount instead of borrowing more.”