Homeowners are expected to boost the lending market in October as they seek out a remortgage to save money. A large number of homeowners are due to have their mortgage term end this month. Due to the many opportunities in the remortgage lending market, few are expected to do nothing and allow their mortgage to move to the lenders’ standard variable rate (SVR). The high remortgage demand is likely to remain strong throughout the rest of the year.

Nick Chadbourne, chief executive officer of LMS, has stated that the last quarter of the year will reveal continued demand from homeowners.

Mr. Chadbourne, remarked, “Remortgaging will continue to outperform other areas of the market, with the majority of borrowers opting for the certainty of a fixed term deal. It remains to be seen whether the market’s increasing attention on 10 year fixes will result in significant product purchasing changes. The latest LMS data shows that 10 year fixed deals make up just 5% of all remortgage deals, but we could see this figure climb as low rates remain attractive to borrowers.”

Lenders are in a competitive mode due to the fact that so many homeowners are scheduled to have their terms end and seek a remortgage in the fourth quarter. They have issued remortgage products that are creative, attached to low interest rates, have longer terms than usually offered, and their fixed rates with long terms are connected to lower rates than previously seen. Some lenders are offering historically low interest rates for their institution.

For those homeowners that do have their mortgage terms ending, those that have already had theirs end and are on their lender’s SVR, and even those not yet close to the end of their deal, experts suggest shopping around to see what remortgage savings are available. If a substantial savings is discovered, as many have done, then taking action soon is likely the smart move while remortgages are so attractive and beneficial.