Homeowners in April took out a remortgage at a level higher than seen since 2008 and the average remortgage value was at an all-time high of £160,806.  The reasoning behind the remortgage levels could be due to a few possible reasons.  One could be the continued low interest rates being offered by lenders.  Another reason could be that homeowners have seen their property values rise to levels that would release valuable cash to them that could be used to lighten their budget burden.  While others may fear the warnings of possible interest rate increases in less than 12 months and are seeking to secure a fixed rate deal associated with the Bank of England’s current low standard base interest rate of 0.5%. 

Remortgaging homeowners seem not to be concerned with the current changes in the lending market due to the Mortgage Market Review (MMR).  The MMR seeks to make borrowing more responsible and requires remortgage and mortgage borrowers to reveal more intimate details as to their spending and saving habits.  They must also undergo a stress test to determine if they are capable of affording the loan when interest rates increase.

The MMR had been adopted by many lenders long before the deadline in the end of April.  Of course, many remortgages could have been sought out to be completed before the MMR took place officially.

Experts agree that the MMR will help lenders better determine the affordability of a remortgage or mortgage loan by a homeowner or homebuyer, but there are those that fear the process will scare off many in attempting to secure a new rate deal or a property purchase.  For those that are weary of the MMR process changes or would like assistance in finding the best deal amoung many, a remortgage broker or mortgage broker could be helpful.  It is a good time to consider borrowing for investing into a property or gaining a remortgage as the interest rates are still very cheap and attractive and they are likely to be long gone this time next year.