The latest research to surface indicates the possibility of a hike in interest rates is having an effect on those choosing to remortgage. Fear is often a motivator for anyone to make a financial choice which could save them money now, but cost them money later through deciding not to carry the choice out. That is the case now with remortgaging. According to LMS, remortgage activity has increased for that very reason during the last year.

During December of 2016 more than 10,500 made the decision to remortgage. This was an increase from the previous year of more than 4,000, or a 66% increase.

Almost 40% of those deciding to remortgage during the last month of the year in 2016, chose to anticipating a rise in interest rates during the next year.

Experts are suggesting those who are considering a remortgage to do so, and not wait for lower rates. These rates will likely not be around for a long time.

Andy Knee, chief executive of LMS, commented on the current economic climate which exists for those looking to remortgage, saying: “2016 was a great year for remortgaging. There were drivers on both the supply and demand side. Record low rates and anticipation of a rate rise in 2017 contributed heavily to the huge surge in activity. With inflation set to outstrip wage growth over the coming year, the opportunity to lower mortgage rates and reduce monthly outgoings will provide welcome relief for many families dreading the squeeze on household budgets – evidenced by price being the primary motivation when choosing a lender.”