According to new figures published by conveyancing firm LMS, the value of remortgages went up by 21% in 2016 compared to the previous year.
According to a January 2017 PropertyWire.com article, a total of £65.7bn was borrowed. In total, 384,950 remortgages were arranged, which was 15% more than in 2015.
One of the drivers behind these figures was historically low interest rates. Many homeowners made considerable savings by switching their mortgage to one with a cheaper rate. LMS believes that many borrowers switched to fixed-rate mortgages because they feared interest rates will rise in 2017. Some people also have a feeling that leaving the European Union could cause an increase..
The largest number of remortgages in a month was in November 2016 when there were 36,850. This was the highest number of remortgages in a month since July 2009.
LMS says 89% of people who switched to a lower rate reduced their monthly mortgage repayments, some by as much as £500 a month.
Andy Knee of LMS commented:
“Remortgaging was driven by record low rates throughout the year, enabling home owners to make substantial savings to their monthly outgoings. Anticipation of interest rate rises in recent months have also encouraged more people to remortgage with many opting to fix for longer.”
Remortgages can be arranged through a mortgage broker who will find the best remortgaging deal. A broker can also advise on protecting mortgage payments through mortgage protection insurance that will pay the mortgage if the borrower loses their job through sickness or accident.