UK Home Owners Remortgage More in July than Last Eight Years
UK home owners are taking advantage of falling interest rates like never before. According to the latest data released by LMS, those owning a house remortgaged at a rate in July which had not been seen since 2008. It totaled more than £7.0 billion as lenders provided deals which included extremely low fixed rates along with low to free administration costs. The month of June posted £5.6 billion which is 25% less than in July.
The remortgage market is booming and is expected to remain so for some time. In addition to the extra low fixed rates which are now on the table, home equity is accessible for use on items such as home renovation, paying off old debt, or taking an extended end of year holiday.
During the month of June, home equity withdrawn increased more than 25% totaling £1.2 billion.
Andy Knee, chief Executive of LMS, commented on home owners taking advantage of a prime time to remortgage, saying: “People who remortgaged in July did so more frequently than they have for more than six years – no doubt to take advantage of low rates in many cases and reduce their outgoings. Feedback suggests almost two-thirds remortgaged in July to take advantage of competitive rates, highlighting that significant savings are ripe for the taking.
“Although there is little for homeowners to fear in terms of a base rate rise over coming months, many could seek stability by remortgaging and fixing now, and we expect activity to maintain its momentum through the rest of 2016.”