Remortgage activity at the end of 2012 had reached only 25% which had been seen at the end of 2008.  This activity, according to figures released by Lloyds TSB, is even with a surge in the number of remortgages approved during the fourth quarter of the year.  During the last quarter Standard Variable Rate products were carrying an interest rate higher than that of many fixed products, thus producing more demand for remortgage applications.  Although remortgages became more attractive at that time, the percentage of remortgages compared with all mortgage lending had dropped by more than 50% by the end of the year, to 24%.

The interest rates are the driving factor behind the ability of a homeowner to benefit from remortgaging.  Due to the rates remaining at an all-time low, the typical homeowner who would be able to see great benefits from the remortgage process are not experiencing the same as usual.  This is leaving many homeowners to decide to stick with the same fixed rate throughout the entire term of the loan.

Stephen Noakes, with Lloyds TSB, remarked on why potential remortgage candidates are sticking with the same mortgage product, saying: “With SVRs at historically low levels, many home owners have actually found their mortgage payments have reduced at the end of their term and the incentive to remortgage has been reduced.”

Noakes continued: “However, as we start to see fixed rates dropping, prudent borrowers taking stock of their home loans could benefit from their monthly payments falling further.”

Remortgages are still commonly overlooked even though the ultimate benefits are more than worth the time to research them.