Remortgage and Mortgage Lending Data Looks Into Borrower Goals to Save
Homeowners are looking to save money through remortgaging and it is certainly a smart choice due to the possibility of saving a lot with a lower interest rate. In March, in response to the pandemic’s impact on the economy, the Bank of England’s Monetary Policy Committee (MPC) cut the standard base rate, not once, but twice. The Bank’s new historical low standard base rate of 0.1% increased the possibility of homeowners finding a lower interest rate on the remortgage lending market at a time when savings matters so much.
According to a recent report from the financial services company LMS, in August the average monthly payments decreased for remortgaging homeowners by £200.76. That is a substantial amount of savings per month, and being it is the average, there were many that saved much more.
Nick Chadbourne, the CEO of LMS, remarked on the latest information about remortgaging homeowners, “Activity levels dropped off across all major indicators in August this year, mainly driven by a focus from all stakeholders on the home-moving market as borrowers look to make the most of the temporary stamp duty changes.
“We also have a spike of product expiries at the end of the year rather than the usual October increase.
“This may lead to a flurry of remortgage activity towards the end of the year as borrowers look to secure a new fixed rate deal.
“It will be the continued development and adoption of security and tech solutions that will be key in helping brokers and lenders manage the spikes in activity come the end of the year.
“Taking a deeper look into customer borrowing habits, it is promising to see that half of borrowers who chose to remortgage in August saw a significant decrease of just over £200 in their monthly payments.
“This comes as lenders continue to offer attractively priced fixed-rate packages as they pass their lower borrowing costs onto customers.
“This will come as a welcome relief to borrowers looking to remortgage to reduce outgoings as the economic uncertainty caused by COVID-19 continues, and the end of many government support schemes come into sight.”