There are several massive benefits to a remortgage for those who currently own the residence they are living in. Of those advantages, house owners are able to obtain a lower mortgage rate and reduce the amount of the monthly mortgage payment. Secondly, a home owner could potentially increase the amount of total loan amount and release equity for assistance in paying off old debt, making a home renovation, or take a lengthy holiday. Typically, a remortgage is obtained to accomplish one or the other, but not both.

The latest remortgage data to surface supports the idea that many house owners are looking to reduce the amount of their monthly payment and secure a lower interest rate. Data supplied by LMS states house owners are increasingly choosing not to release home equity during the process. The total number fell from March to April by 4% to 24%.

Almost 40% of those choosing to remortgage within the month of April were able to decrease their monthly mortgage payment by £500. Another group totaling 3% was able to reduce their monthly payment by more than £500.

Currently lenders are locking horns in an effort to secure more market share and offering low interest rates attached to remortgage deals.

Chief Executive Andy Knee commented on the latest data, saying: “The outlook remains bright for remortgaging but there has been a slight shift in the attitudes of why people are doing so. Remortgagors in April were more interested in getting the most cost-effective deal to reduce their monthly payments and boost their spending power elsewhere, rather than using it as a tool for debt reduction or increasing the size of their loan: an indication household finances are more robust and a ray of hope in the face of predicted economic slowdown as the country nears the EU referendum.”

Knee added: “Following the vote, the Bank of England is likely to keep rates on hold – or even lower them – but speculation that a potential Brexit would cause mortgage costs to rise, should encourage prudent homeowners to cement their finances against uncertainty and reap the benefits by locking in to a low mortgage rate.”