Homeowners have been showing strong demand for remortgages. There are many reasons for the strong demand, including but not limited to the ability to save money and secure a fixed rate to give peace of mind against rising interest rates in the future. According to a recent report, of those that sought a remortgage in May, almost half of the deals were 5 year fixed rate remortgages at 44%, and two year fixed rate remortgages made up 39% of the remortgage products.

The report by LMS included data that revealed 67% of remortgage borrowers chose from a broker recommendation and of those 97% chose a fixed rate product.

Brokers are helpful to those that want to shop with many lenders through one source. Homeowners could also discover exclusive deals offered by lenders only to customers of brokers and not the general public.

Nick Chadbourne, chief executive at LMS, remarked, “Last month saw a sharp increase in remortgage volumes, increasing from 52,745 in the previous month to 53,624.

“April and May have been recorded as the busiest months of the year for product expiry rates, for the last two years, so these numbers fall in line with market expectation.

“Current volume levels now sit at a 12-month high, revealing that despite wider uncertainty, the market is resilient. Homeowners are continuing to take advantage of interest rates at near record low levels, just 0.5% above the lowest recorded.

“Almost half of borrowers are now opting for a 5-year fixed rate product, and once more this trend carries on from what we’ve been seeing over the last couple of months. “It will be interesting to see if this continues throughout the second half of the year.

“As we move into summer, both new enquiries and completions are likely rise, delivering a surge in demand for mortgage brokers, lenders and conveyancers.”