The month of June experienced a drop in remortgaging according to data from the Council of Mortgage Lenders (CML).  The decline could signal less about demand as it does about homeowners choosing to wait out and take advantage of rumors that were running rampant that interest rates would decline.  The rumors were falsely believed and the Bank of England’s Governor, Sir Mervyn King, has assured that the rates will sit steady at this time with no expectation of a decline by the Monetary Policy Committee (MPC) in the near future.

There were 23,400 homeowners that switched their mortgages to a new lender in June which was a decline of 20.9% from May’s data and in an annual comparison it was a decline of 24.5% from June of last year.  Remortgage value was 18.4% less than May and the previous year at a total of £3.1 million.

Remortgage deals have been very attractive and some lenders have offered deals below 3% but it hasn’t budged homeowners out to grab such a cheap remortgage because the loan to value level is at 30% to 40% and fees are quite high with some close to £1,000.  Homeowners should be aware however that there are lenders now fighting for business and the competitive environment is pushing remortgages lower.  Week to week the deals are becoming more attractive.

How long the remortgage deals will be so affordable is unknown and for those homeowners that can benefit from a great deal they should be aware that deals are out there.  While it may take some shopping around or the services of a remortgage broker to find the best ones, the end result could be well worth the effort.