Remortgage activity slowed a bit during the month of February this year, but since then has come storming back and rallied more than modestly during the month of March, according to the latest figures from Connells Survey & Valuation. The sector increased to more than 20% of the valuations market during the month which tops the 15% level it posted during the same month last year.

Inflation is creating quite a stir within family households which is making saving money that much more important in today’s economy. Remortgage, as a unique type of mortgage lending tool is increasing in activity. This is not to say in the last several months dating back to early last year this tool has become more popular than ever before.

Thanks to a cut in interest rates in the middle of last year, lenders were and are able to make deals available not quite seen before. Families are now saving money on the cost of the monthly mortgage payment. Some are saving hundreds, sometimes thousands each month through remortgage.

The amount of remortgage activity is now at its highest level during the month of March for five years.

John Bagshaw of Connells Survey & Valuation commented on the latest remortgage data, 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.”

Bagshaw added: “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.”