Remortgaging is being boosted by those homeowners seeking to grab a cheap interest rate before they begin to disappear.  The level of interest rates currently a part of remortgage deals is likely to never be seen again and that is a good thing since it will mean that the economy has rallied back to health.  However, it doesn’t mean that everyone is keen to spend more on interest associated with their mortgages just to signal a healthier economy.

According to data compiled from 550 brokers and 900 estate agents by the Mortgage Advice Bureau (MAB) remortgage applications rose by a level of 21% in July.  This level is the largest boost seen for the year.  It is also the first time that remortgages have outpaced property purchase mortgages.

Brian Murphy of MAB said, “A likely raise in interest rates will prompt many homeowners to reconsider their options and lock into preferential rates before a base rate rise takes hold.”

The data revealed that the average salary of those remortgaging was £46,900.  This is an increase of 7% over the average salary of homeowners seeking a remortgage at the same time last year.  The average house price associated with remortgages in July was up by 18% to £310,646.  The data indicates that those with higher property values and more in salary are seeking a low interest remortgage. 

The Bank of England’s Monetary Policy Committee (MPC) is not expected to swiftly change the interest rate but it is a possibility that by the end of the year or early in next year homeowners will be facing higher interest rates on their standard variable rate (SVR) or when seeking a remortgage.