LMS has reported that homeowners in May remortgaged and saved on average £441 per month. The substantial savings is a result of continued low interest rates deals of which some have recently been introduced at below 1%. This is good news for homeowners seeking to save money with a remortgage, or for those seeking a fixed rate deal to secure a safety net against rising rates. Many have not only secured a lower fixed rate deal, but have put cash into hand with an equity cash release remortgage.

According to LMS, instructions in May grew by 9.7%, with the most popular remortgage product being a five year fixed rate. The most popular reason to remortgage was to release equity into cash and accounted for 36% of the borrowers.

Nick Chadbourne, LMS chief executive, remarked, “May was a busy month for remortgaging, with instructions rising by nearly 10%. This came as lenders introduced mortgage repayment rates under 1%, making it an ideal time to remortgage for those looking to save through switching.

“We expect this activity to continue through Q3 with more borrowers taking advantage of the low rates and reduce their monthly payments.

“Research by Moneyfacts shows that five-year fixed rates are the cheapest in 14 years, and we’re pleased to see more than half of remortgagers benefiting from this.

“However, while some borrowers lock in historically low rates, others are finding it more difficult to secure the most attractive products on offer, particularly homeowners who have had changes to their circumstances since they took out a mortgage pre-pandemic.”

For those that do have complicated remortgage needs, experts suggest considering shopping with a remortgage broker. Brokers work with many lenders and will have first-hand knowledge as to which lenders are more likely to work with homeowners dependent on their unique remortgaging needs.