Homeowners are building up the demand for remortgages and there are many reasons for the surge. According to figures from the Bank of England, there were 36,620 remortgages in June. This marks the largest volume of remortgages since February 2011.

Low interest rates being offered by lenders is one of the major factors in the rise of remortgages. Rather than the competitive environment that exists between lenders coming to a close, it has taken on new life and some are going even further to win over the attention of borrowers. The attractive remortgage deals are too good to pass up and homeowners are looking to take advantage of the offers.

Equity levels have increased due to rising house prices. The rise of equity in properties has offered the chance for homeowners to obtain cash equity release remortgages to pay off debt, take a holiday, or buy a large priced item.

Another reason for homeowners to be rushing to remortgage is the renewed warnings that the Bank of England is drawing closer to an interest rate hike. The UK economy is rebounding well from the financial crisis, much better than other countries. As data comes together to show that most sectors are doing well, pay has increased, unemployment is down, and other factors reveal the economy is doing better, then the Monetary Policy Committee (MPC) is likely to act. Experts suggest that the first rise in the standard base rate is likely to be 0.25% bringing the rate to 0.75%.

It will be the first rate increase by the MPC since March 2009.

Since gaining a remortgage is a much more detailed and lengthier process than it was in the past with new regulations in place, homeowners should give themselves ample time to shop for a new remortgage deal and gain approval long before the first rate hike occurs or lenders pull their best rates.