Remortgage activity within the first and second quarters of 2018 has been at quite a heightened pace. Many close to the housing market see the surge in remortgage approvals as the home owner’s strategy against possible rising interest rates and some believe it could be as simple as obtaining a low interest rate. Interest rates remain at historic lows and are expected to stay low even if an increase takes place later this year. The Bank of England has hinted at a hike in interest rates during the August meeting of the Monetary Policy Committee.

Recent figures from the month of May indicate remortgage is strong. An increase of more than 7% compared with the same month last year brought remortgage approvals to 31,000 for the month. Low interest rates still dominate the appeal for remortgage. Now, however, lenders are even adding incentives to the mix like discounted closing fees and other administrative fees free of charge.

Remortgage has settled in as a strong option for home owners in search of a lending tool to help save money instead of moving home. Interest rates remain quite low and give many home owners the ability to save money. In addition to lowering the monthly mortgage repayment amount, access to cash is possible through the application process.

Housing experts believe there could be a surge in remortgage applications during the next few weeks due to a possible hike coming in the month of August. It is recommended to house owners to consider remortgage before lenders are overwhelmed with borrower applications and time simply runs out before the interest rate hike.