Remortgage as an intended way of lowering a monthly mortgage payment has hit new levels of activity within the month of March, according to the latest figures from Connells Survey & Valuation. Inflation is increasing and UK house owners are in need of cutting expenses as much as possible to improve the family budget. Many are looking to remortgage as a way to cut cost and free up funds for everyday expenses. In fact, surge in the amount of remortgage activity has pushed it to its highest level in five years as it compares to other market activity.

Remortgage is now being looked at in a new light. Once hardly noticed as a method to reduce the monthly mortgage payment; it is now the go-to for such a tool. Homeowners across the country are obtaining this type of lending to help reduce overall cost and free up valuable home equity for use in multiple ways.  

John Bagshaw, corporate services director of Connells Survey & Valuation, commented on the latest data from March, saying: “Remortgaging rallied in March. As the cost of living rose, consumers started to hunt ways to reduce outgoings. Food prices have been increasing at their fastest pace in three years while fuel prices have jumped 18 per cent annually. Faced with a spike in bills, homeowners have been forced to become more frugal.

“For those struggling, remortgaging can offer tangible financial relief. With the low-base rate and property values increasing 6.2 per cent annually, many are seizing the opportunity to save through remortgaging at a lower loan-to-value ratio. This trend is supported by the latest CML figures which show a 22% rise in the value of remortgage activity. If the price rises continue and household bills balloon, we could see an ever greater number of homeowners turning to remortgaging to cut costs.”