Homeowners are still taking advantage of remortgaging opportunities. According to the latest information from LMS, completions in remortgage lending increased by 17% in April. The LMS Monthly Remortgage Snapshot report showed that demand in remortgaging continues with more than half of homeowners choosing a five year fixed rate deal. 

Savings continue to be a motivator to remortgage with the average monthly repayments declining by £195. That amount could be substantial to homeowners on a tight budget. 

There was a drop in instructions, and it is blamed on the financial strain brought about by the pandemic which has caused some homeowners to be denied a remortgage due to furloughs, loss of income, or a cut in household income.

LMS chief executive, Nick Chadbourne, remarked, “Despite the drop in instructions, remortgage activity levels remained healthy through April with completions up 17.1% and fewer cancellations across the month.

“The industry continues to work through the backlog to meet sustained demand, buoyed by the attractive repayment rates offered by lenders as they continue to compete for business.”

Experts encourage all homeowners to shop around for a remortgage. There are low interest rates available to offer savings, and lenders are currently competitive for the attention of borrowers. 

Of course, the lowest interest rate is what homeowners are searching for, but it should be said that the lowest rates often have the highest fees. The fees could cancel out a lot of the savings making the lowest rate deal less attractive than perhaps a deal with a slightly higher interest rate with cheaper fees.

Taking into consideration all savings and all costs of a remortgage reveals the true overall savings and offers the homeowner the information to help narrow down choices and choose the best remortgage. 

It is expected that remortgaging will remain in high demand and it could continue through the year as talk continues of upcoming increases in the Bank of England standard base rate in early 2022.