The Brexit vote has been a catalyst for changes within the UK housing market and homeowners taking advantage of remortgages is no different. Interest rates have been cut immediately following the historic vote and now owners are seeing lower monthly mortgage payments. This, along with accessing valuable home equity, is proving once again to be the home mortgage tool of choice.

Just short of 70% of those remortgaging during the month of July saw their mortgage rates fall, according to the latest data by LMS. During the month of May, rates obtained by homeowners were only at a 56% level.

A remortgage has the potential to change the financial profile of most home budget plans. The positive change in the monthly mortgage payment is not just a temporary change, but a permanent one. It is also an excellent method to protect oneself from future interest rate adjustments. Lenders are currently offering fixed rate products which make it possible for homeowners to lower their monthly mortgage payments by potentially hundreds of pounds.

Andy Knee, chief executive of LMS, commented on the latest remortgage data, saying: “The aftermath of the vote to leave the European Union has seen many mortgage rates tumble to record lows: a fact that has not been lost by homeowners as many seek to take advantage of low rates. July’s figures show many people were keen to press ahead with plans to remortgage, regardless of growing speculation that a base rate cut might be on the cards.

“The Bank of England’s reduction of the 0.5% base rate to 0.25% is likely to offer an extra incentive to anyone considering remortgaging. Recent cuts may mean that rates don’t have that much further to fall, but even so, there are significant savings to be had in terms of monthly repayments. The prospect of an extra £200 or more to spare in their monthly budget will give many homeowners reason to weigh up their options over the summer.”

Knee added: “Despite uncertainty in the immediate aftermath of the referendum, the property market very much remains open for business. The shabby savings rates on offer mean that, when it comes to raising money for home improvements or clearing other debts, many people will naturally consider the wealth they have gained as a result of sustained house price rises.”