Remortgage activity within the UK housing market continues to show promise as the summer closes with July coming in with strong final numbers.  The amount of remortgage lending totaled almost a 10% increase from June to July, according to the latest figures made public by the Council for Mortgage Lenders.  This spike is more than likely a direct result of the great possibility of the base rate increasing in the coming months.

The total number of remortgage loans in July increased by 7% with the final tally being more than 25,000.  Actually, this is a slide from the same time last year when remortgages totaled almost 30,000 for the month.

Many homeowners are still unaware of the massive benefits which can accompany a remortgage.  Not only can a remortgage help lower a monthly mortgage payment, it can also free up funds to assist with home remodeling or even a child’s education.

Andy Knee, chief Executive of LMS, commented on the latest news which could impact remortgages, saying: “With two members of the Bank of England’s MPC already staking a claim for an immediate base rate rise, an increase looms ever closer, having an impact on aspiring and existing homeowners. However, customers shouldn’t panic as any change is likely to be gradual allowing customers plenty of time to explore the best rates available to them.

“Affordability remains key to the property market. With the average amount of equity released through remortgaging falling by 4% from last month, it is apparent that more stringent rules and less competitive rates are taking their toll. That said, it is still possible for customers to get a good deal if they hunt around – with 60% of those who remortgaged doing so to lower their mortgage rate.

“We expect uncertainty surrounding a base rate rise will also encourage a surge in remortgage activity, especially later on in the year as more customers look to fix rates while they can, and before rates creep up any further.”