Remortgage Activity Massive During the Month of December
UK remortgage figures from the month of December are posted and the activity level which began in the fall seems to be alive and well. Historic low interest rates and the benefits of what a remortgage has to offer are just two of the main reasons for such interest in a remortgage right now. December data proved how much the mortgage lending tool is on the minds of many house owners even during the weeks leading up to the holidays. Home equity was withdrawn during the month at a volume not seen in nine years.
Access to home equity during a remortgage is typically the second priority, with new savings off the monthly mortgage payment as the first. Home equity withdrawal however was massive during the last month of the year and the most on record. The average withdraw per person who chose to obtain a remortgage was more than £30,000. To put this figure into perspective one has to compare it to the last month in 2008 in which the average was only £8,800.
Charlotte Nelson, of the website Moneyfacts.co.uk, commented on the impact of a lower mortgage payment, saying: "Mortgage payments are one of the biggest financial outlays a homeowner can have, so it's a no-brainer to grab a low rate deal while they're still available.”
Nelson added: "Of course, borrowers need to look at the mortgage as a whole to ensure they get the best deal for them, but by taking advantage of the rates on offer today, they could end up saving a significant amount of money."