Data recently released by UK Finance reveals that homeowners are still very interested in escaping possible higher interest rates on their lender’s standard variable rates (SVR) as well as any possible Bank of England rate hikes in the near future by seeking remortgages. The number of remortgage borrowers increased by close to 20% in the year to year comparison for May 2018 and May 2019.

There was an increase in the number of homeowners that chose to increase their remortgage through additional borrowing. There were 21,370 in May of 2019 and that was 19.8% higher than the same month last year. The same time period comparison revealed that there was also an increase in those that did not borrow any additional value in their remortgage by 19.7% at a volume of 19,650.

Fixed rate remortgages remain the most popular product for homeowners and many are also showing interest in equity cash release remortgages.

Homeowners that have had their current mortgage term end are moved to their lender’s SVR if they do not remortgage with their current lender or another lender. Experts warn those homeowners that mortgaged two or more years ago, or homeowners that remortgaged during that same time period, that without a remortgage they could find themselves paying a lot more on a SVR. In some cases, they could be paying double or more the interest rate on a SVR than what they were paying on their previous mortgage.

By remortgaging, a homeowner can escape the threat of higher interest rates and a lender’s SVR, which is why remortgage lending continues to be strong and is expected to remain as such up to and through Brexit.