Lenders are offering homeowners substantial savings with low interest deals and the months long trend could be ending with a boost in demand. Once homeowners return to lenders seeking cheap borrowing opportunities in higher volume, lenders will no longer need to be as competitive as they are currently. According to new data from a survey by Nottingham Building Society, a boost to the remortgage lending market is coming as one in six homeowners is considering a remortgage within the next six months.

The average savings is reported as £99 a month or £1,188 a year for gaining a new deal.

Fixed rate deals are the most popular for those remortgaging with three-quarters of those considering a new deal expecting to secure a low interest rate. Tracker rates were popular with 7% of those surveyed while another 7% said they would choose a standard variable rate (SVR).

Ian Gibbons, Senior Mortgage Broking Manager with Nottingham Mortgage Services, offered advice to homeowners seeking a savings with a low interest rate deal, saying, “The mortgage price war is interesting to existing homeowners who are keen to take advantage of the record low rates. With interest rates expected to rise in the coming years then now could well be the right time for many to consider whether there are savings to be had.

“Potentially savings are higher than the average £99 a month people are looking for. Someone with a £150,000 mortgage who moved from a deal at 4% to one at 2% could be around £3,000 a year better off. However, to secure the best remortgage deal it is important to look at more than the base rate. You need to search the whole market and to be aware of the product fees that may be charged. A great rate won’t save you much if you have to pay a high fee.”