The rush to remortgage was expected to be significant and with the financial figures from the month of October now rolling in that opinion has been confirmed. Remortgage activity ballooned to an eight year high during the month as anxious homeowners rushed to lenders to obtain a fixed deal ahead of the interest rate hike which took place a few weeks ago. The base interest rate was hiked from 0.25% to 0.5%.

Homeowners pushed the bar high as they made their way to the closest lender and locked in a more attractive fixed rate mortgage deal. More than £23bn in mortgage lending was approved in October which is an increase of 14% compared with the same month last year.

The Bank of England had warned about an impending increase for weeks prior to the hike. Homeowners found deals ahead of the rate hike which could potentially save them thousands of pounds each year going forward.

Housing experts cautioned those who were waiting until the last minute to make the move soon before banks and lending institutions increased rates attached to their best deals.

Remortgage is no longer viewed as a last option to save money on the cost of the monthly mortgage. Through low interest rates and competition within the lender community, remortgage is now thought of before most other mortgage lending options. The process can now be completed entirely online and does not take months to finalize.

Thousands of homeowners took advantage of the low interest rates available prior to the hike and locked in to a lower fixed rate. Although interest rates increased, many attractive deals still exist with many lenders offering fixed rate deals with low administration fees.