Remortgage Activity at High Level and Expected to Stay There
Many house owners are now seeking out a mortgage lending tool which has been at their disposal for some time, just not acted upon. Remortgage activity is at its highest level in years thanks to words from the Bank of England a few weeks ago. The only question for house owners now is when, and not if there is going to be a rise in interest rates. Many are leaving the estimates to industry experts and obtaining a remortgage whilst there are still several attractive deals to take advantage of.
The British Bankers’ Association recently published a chart with remortgage activity to July of this year. It indicates remortgages are surging in number along with original home mortgage loans. Approvals are up 15% overall in July compared with the same time last year. This is just a small mark compared with remortgages which are up almost 30% compared with the same time last year.
As many house owners are taking advantage of a remortgage, many still are unaware the financial product exists. It is not only available, but can do things which an original mortgage loan could never do.
A remortgage allows a house owner to not only obtain a lower interest rate on their current mortgage, but also withdraw from home equity for use in other areas. Many house owners use this cash as a way to pay for renovations, old debt, and even overdue holidays.
Lenders are involved in heavy competition for those seeking a remortgage. The rise in interest rates is expected to come in the upcoming months.