2017 looks likely to be another strong year for remortgaging after total remortgage lending in the UK topped £65.7 billion in 2016, according to research by conveyancing service provider LMS. This is equal to a 21% year-on-year increase.
LMS chief executive, Andy Knee, said: “Remortgaging was driven by record low rates throughout the year, enabling homeowners to make substantial savings to their monthly outgoings. Anticipation of interest rate rises in recent months have also encouraged more people to remortgage with many opting to fix for longer.”
The total number of remortgages in 2016 was 384,950, up 15% from 333,400 in 2015. November alone saw 36,850 remortgages, an increase of 21% compared to the previous year. This is also the highest number in a month since July 2009.
This trend is likely to continue in 2017, with nearly a third of eligible homeowners planning to remortgage, as revealed in a survey carried out by TSB. Because interest rates are so low, many homeowners could significantly reduce their monthly outgoings by remortgaging now.
Ian Ramsden, TSB’s Director of Mortgages, said “Mortgage payments are often the biggest outgoing for many households. By remortgaging, homeowners stand to save up to £96 per month on average.”
The impact of Brexit is likely to affect the market and may start to be felt more once Article 50 is triggered, which is expected to occur in March. This could well lead to rising inflation and a squeeze on family finances, making remortgaging to cut monthly repayments an attractive option.
If you are thinking of remortgaging, it is advisable to do so now as lenders are likely to start raising their rates throughout the year as the full impact of Brexit begins to be felt.
