Remortgage applications increased during the course of last month, after several months of lackluster activity. The number of applications spiked by more than 20% last month, according to the Mortgage Advice Bureau’s latest issue of public data. Remortgages are now able to compete with the national average for wage growth, and in many cases, surpass it.

The personal data on a normal borrower is as follows. It is a person with a salary of £47,881 per year and holds a mortgage of £162,590. Through a remortgage of today, that individual has the potential to save more than £2,000 per year by opting out of their current mortgage loan and into one of the popular loans out on the market.

This is not a well hidden secret, nor is it a difficult process to complete. The process of obtaining a remortgage is still unknown to many house owners, but continues to grow in popularity simply for the financial benefits it has to offer.

The scenario mentioned would be equal to a pay increase of almost 5%, which is twice as much as salaries are rising.

Remortgages are an excellent method to assist a house owner in lowering their monthly mortgage payment. It is also a way to free up extra cash to be earmarked for things such as house renovations, paying off school loans, or possibly taking the family on an extended holiday. Currently, there are many lenders offering attractive deals to anyone looking to remortgage.

Brian Murphy, head of mortgage lending at the Mortgage Advice Bureau, commented on the current climate present in the lender market, saying: “The current price war has been intensified by fierce lender competition and a number of new entrants to the market.”