UK households in search of cutting monthly outgoings and securing a position in case of an interest rate hike in the future found solace in remortgage during the month of July. During the month of July, remortgage accounted for more than £7.2bn in mortgage lending, up from £6.6bn during the month of June. Overall home mortgage lending totaled £12.6bn, down from £13.7bn during the month of June.

Homeowners seeking a secure space against the possibility of an interest rate hike are locking in fixed deals for longer term periods, according to housing data just surfacing. A small, 0.5% hike in interest rates can mean several hundred additional pounds in cost each month. A simple fix to possibly paying more in the future is obtaining a remortgage for those who qualify.

Andy Knee of LMS commented on the latest data to emerge, saying: “We are already witnessing people remortgage onto longer term deals for added certainty and financial security and we expect this trend to continue as long as the macroeconomic climate grows ever more precarious.”

This rush to remortgage has been a constant theme for homeowners since interest rates fell last year. As uncertainty continues to dominate the future of the housing market, many are searching for firm footing at least during the short term. Brexit negotiations and the addition of new taxes are planting questions in the minds of many as to which direction the market is heading.

Remortgage makes it possible to fix a monthly expense for years to come eliminating the chance of an increase in cost of the monthly mortgage.