According to surveyors Connells Survey & Valuation, data supporting the explosion of remortgage activity is quite convincing.  Remortgages have grown more in the last year than any other sector within the housing market.  In one year to February remortgage numbers have increased by more than 30%.  Just in the time from January of this year to February, remortgage activity has increased almost 20%.

Remortgages are still not considered by many within the housing market.  Benefits abound by obtaining a lower interest rate through remortgage and many homeowners do not put the time into researching the possibilities.  Remortgages are simple to obtain now and the entire process can be done now online.

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, commented on the current activity level of remortgages and what the near future looks like, saying: “We are expecting further good news on the economy when official forecasts from the OBR are released later this week.  At the same time, the Chancellor will want to make plenty of political capital out of any other improvements he can announce on Wednesday afternoon.  But as more good news rolls in, expectations about the likely timing of an interest rate hike may change, too.  It’s likely that forecasts will start to predict an earlier rise, which will increase the cost of mortgages.

“Household budgets are still recovering from the last half decade of wage freezes and economic stagnation.  Remortgages are making up a large part of the market as people struggle to make budgets add up – they’re remortgaging to keep monthly payments down.  As the likelihood of an impending interest rate hike increases, so will the number of homeowners looking to remortgage as they try to ensure they will still be able to pay the bills in the future.”

Bagshaw concluded: “People who, until a few months ago, might have been put off by the economic climate have started to think more seriously about moving.  For most of the UK, the spectre of negative equity has receded, and in many parts – not just the South East – there is a palpable sense of optimism.”