The UK housing remortgage market is primed to go into overdrive as the day approaches in which the base rate is increased from the 0.5% level at which it now sits.  This level of base rate has gone unchanged for several years now to the delight of many house owners who are paying quite a bit less each month in a mortgage payment.  There could be a deluge of remortgagers come forth all at once though as many experts see the house owners wait until the last minute before rate change to make that all-important journey to the lender office.

Remortgage demand reached a new four-year high in April to June time frame, according to data from the Mortgage Advice Bureau.  Recent results from analysis of searches done on an estimated 150 websites indicated remortgaging is now a hot topic as more than half of the activity was on the topic.

Brian Murphy, head of lending at Mortgage Advice Bureau, commented on the benefits of a remortgage, saying: "Remortgage lending may have been subdued in recent months, but these figures suggest there is a sizeable swell of enthusiasm building up that is likely to break through as the year progresses and the inevitable rate rise approaches.  Many existing owners have been sitting pretty with exceptionally low interest payments thanks to the 0.5 per cent base rate.”

Murphy added: "This won't change overnight with incremental increases on the cards – but the prospect of a rate change makes it worth revisiting the decision to stick or twist with your existing mortgage. In some cases, the cost of an early exit fee or early repayment charge on a fixed-term deal can be outweighed by the benefit of a better rate.

"Personal circumstances will dictate whether it's worth exiting early and locking into another rate or simply waiting it out with limited rises on the horizon.

"It pays to seek advice about the option that best suits your needs."