Homeowners could be missing out on real opportunity to provide a safety net to their financial health. Remortgages are currently at historically low levels from lenders. They are offering not only cheap interest rates, but attractive incentives to grab the attention of those that have had their mortgage deal end, are close to having it end, and those ready to grab a new deal for the opportunities possible.

According to LMS, the demand on remortgages dropped by 12% from August to September. In August the volume of remortgaging was 34,900 while September reported 30,799. The gross remortgaging value decreased by 14% from £5.9 billion in August to £5.1 billion in September.

Remortgaging accounted for 25% of September’s total gross lending. This level is the lowest since March 2016.

Andy Knee, Chief Executive of LMS, remarked, “The recent weeks and months have been tainted with uncertainty. Since the vote to leave the European Union there has been some doubt and ambiguity surrounding the future of the nation’s economy.

“This uncertainty appears to have spread to the remortgage market, with activity at its lowest level since the referendum. Gross remortgage lending and the share of remortgaging in the wider market have both fallen as homeowners put remortgaging plans on hold to wait and see how Theresa May’s government approach Brexit negotiations.

“The number of remortgages has fallen as more homeowners remain on their current deals for the time being. Remortgagors are also remortgaging less frequently than a month ago, which is surprising given the current market climate of low rates. Homeowners considering remortgaging should be spurred to act now as mortgage providers may soon raise rates to cover costs stemming from higher swap rates in recent months.

“However, it is not all doom and gloom. Annual repayments have fallen again and mortgage rates are at their lowest-ever level. For those homeowners willing to remortgage, there remains plenty of incentive to do so and many could still benefit by remortgaging onto deals with lower interest rates and repayments - 85% of remortgagors did exactly that in September. Reducing monthly payments is something that will be important for many as inflation increases and the price of everyday essentials rise.”

For those homeowners that could benefit from fixed rates, long term fixed rates, cheaper interest rates, or an escape from their lenders’ standard variable rate (SVR) a remortgage could be the safety net in a uncertain economic future.