Remortgages are available at some of the lowest levels seen in history dipping below 3%.  There are also remortgages with higher loan to value levels, longer term fixed rates, and great freebies to choose from.  Homeowners no doubt have better choices in remortgages than were available months earlier.  However, the demand for remortgages remains low especially from homeowners looking to release equity as cash.

Statistics have revealed that in the last three months the trend continued of homeowners paying down debt rather than taking out new loans.  The Bank of England (BoE) reported that for the 17^th successive quarter consumers have chosen to pay down debt rather than adding to it.  Between April and June £9.8 billion on mortgage debt was paid down while the previous three months of January to March involved a repayment level of £9.6 billion. 

Mortgage lending approvals are at half the level they were in 2007.  The data reveals that there are fewer purchases, fewer remortgages, and fewer moving home.  It is not a big surprise that homeowners are feeling the need to build equity in their properties while house prices continue to struggle but the report believes that the repayment level does not indicate that homeowners are paying down their mortgages quicker.

The BoE report said, “…that the fall in housing equity withdrawal since the financial crisis is likely to reflect a fall in the number of housing transactions, with little sign that households in aggregate are making an active effort to pay down debt more quickly than in the past.”

Remortgage experts suggest that homeowners consider if a remortgage could be helpful and be willing to switch to gain financial benefits with a lower interest repayment.