The Bank of England move to cut interest rates has had a resounding effect on home owners looking to remortgage over the past several weeks. The impact has created a barrage of home owners seeking new deals resulting in many saving hundreds off the cost of their current monthly mortgage payment. More than 50% of those choosing to remortgage in the month of August did so because their current mortgage deal was ending.

Almost 80% of home owners who remortgaged in the month of August indicated they thought interest rates were in decline. This is actually 20% higher than those in July who thought rates were falling.

Remortgage as a financial tool keeps proving to home owners that saving money is possible, regardless of the current economic climate facing all residents. It is not only a tool to lean on to save money, but also one to count on when needing to access home equity for burdens such as old debt, or when a home is in much need of a renovation.

Andy Knee of LMS commented on the impact of falling interest rates, saying: “The Bank of England’s decision to lower the base interest rate has profoundly impacted the expectations of homeowners when it comes to future rate changes. More people than ever believe rates will fall further, which would be good news for first time buyers and remortgagers alike, even as they benefit from what is already record-low pricing.”

Knee added: “Looking ahead, the recent drop in the percentage of remortgagers increasing the size of their loans may serve as an omen of caution while the nation’s long-term economic outlook remains unclear. Homeowners may think twice about borrowing more when they remortgage; but in the meantime, there are plenty of other incentives to do so and the market remains resolutely open for business.”