Just as expected due to the words of warning concerning the hike in interest rates, remortgages have completely taken off during the last six months of last year. According to the latest data on the UK housing market, remortgage activity increased almost 100% during the last two quarters of 2015. September alone saw a year on year increase of 143% compared with the same month of 2014. Only November posted higher figures at 150% year on year increase.

Remortgages are currently being sought out like never before. This is mostly due to the likelihood of an increase in interest rates which is expected to occur around the third to fourth quarter of this year. Many experts have suggested remortgaging now instead of waiting on firmer dates of an increase.

A remortgage gives the existing house owner security for the future against further rate hikes by locking in a fixed interest rate. It can also free up valuable home equity to be used for projects which have been put on delay.

David Hollingworth with London & Country Mortgages commented on the latest data, saying:

“It’s good to see a healthy number of borrowers taking the opportunity to review their mortgage and take advantage of the very competitive rates on offer. The combined appeal of cutting monthly payments and protecting against future rate rises should maintain a strong level of interest. 

“Rates have not only improved for those with big deposits but also for those higher up the LTV scale, so there should be even more people that can now grab the opportunity to cut their mortgage costs.”