UK house owners looking to remortgage have had fate fall on their side in regard to the value of their property. According to the latest data from Mortgage Advice Bureau, house values of homes for remortgage are at a 13-month high. This increase will put remortgage applicants in more favourable position as they seek to change the household bottom line.

Remortgagors are able to take advantage of better mortgage lending products with the increase in house equity after such a rise in house values. The average now sits at £304,514. This November value is a yearly increase of almost 6%.

Brian Murphy, head of lending at Mortgage Advice Bureau, commented on the benefits of increased house equity, saying: “With a large portion of many people’s wealth tied up in their property, homeowners should ensure they are making the most of this asset. As house prices continue to rise, homeowners are benefiting from increased housing equity, enabling them to access competitive remortgage deals.

“Record low rates and high product numbers mean that many homeowners could benefit from switching their deal. People should not be deterred by the perceived hassle of remortgaging: in most cases it leads to lower monthly payments, better mortgage rates or shorter terms, making homeownership more affordable. The New Year is usually a time for reassessing personal finances and mortgages should not be ignored in the process – make it a resolution!”

Murphy added: “For those who opted for a two year tracker, the decision has certainly paid off as the base rate is still at an all-time low. Typical tracker rates have dropped significantly over the year and remain lower than fixed rates. However, there is always the risk of rates changing and many borrowers will prefer the security associated with fixed mortgage payments.”