Lenders deals have done their job in bringing in more homeowners for remortgage deals.  Cheap deals have been the norm as of late when it comes to a remortgage.  The loan to value levels have risen, interest rates have fallen and the gap between fixed rate remortgages and trackers has narrowed.  Without the threat of a hike in the standard base interest rate by the Bank of England demand had dropped for remortgages.  This pushed lenders to offer better and better deals to bring in homeowners and it has worked for many.

According to the data from the Council of Mortgage Lenders (CML) for the month of August remortgages rose by 33 per cent when compared to August of last year.  From July to August the increase was 9 per cent.  The value of loans rose by 5 per cent in month to month comparison and 31 per cent when compared year to year.

Chris Broome of Broome Financial Planning said, "These latest mortgage figures are encouraging given the overall state of the economy. On the one hand, you have an economic climate that reduces the incentive for people to buy, but on the other, the combination of highly competitive mortgage rates and low house prices is proving irresistible.

"In many respects, prospective buyers and homeowners have become hardened to the current climate. People have to get on with their lives and more of them are doing just that.

"The sharp rise in remortgages since last summer reflects just how much more attractive the mortgage products out there have become. Although interest rates are expected to stay on hold for some time yet, people feel they cannot turn down some of the rates currently on offer."