Remortgage lending demand has been boosted due to homeowners taking advantage of the present day opportunities to save money with a low interest rate deal. Many of those seeking a remortgage have had their current mortgage deal end and desire to escape their lender’s standard variable rate (SVR) before increases begin to appear. Those homeowners that have moved over to their lender’s SVR are at risk of having their rate increase almost without warning and facing financial hardship.

Remortgage deals are still very competitive as lenders seek to gain the attention of borrowers that are determined to grab a new deal and experts encourage homeowners to prepare now for the rising interest rates to come.

According to data from LMS remortgage loans advanced during September increased by 12% over August. There were 28,686 in September compared to the 25,600 advanced in August. In an annual comparison there was an also an increase by 4%. The remortgage value totals for the month increased as well at 3% in a year on year comparison with a total of £4.4 billion.

A large number of homeowners are seeking fixed rate remortgages and they are also releasing equity into cash during their deals. The average amount of equity released through remortgaging reached £31,241 in September. That level is 77% higher than the average level of equity release in September of last year.

According to experts the first rate change by the Bank of England will occur next year. However, lenders may not remain as competitive until that time next year. That will mean that those homeowners that waited out instead of switching to a new deal missed on the historically low interest rates lenders are offering currently.