According to the Intermediary Mortgages Lenders Association (IMLA), more applications to remortgage were successful in the third quarter of 2016 up to the end of September compared to the quarter than preceded it.
As reported by Moneyfacts.co.uk in December 2016, during this period, 80% of applications for remortgages were successful and of those offered a new mortgage, 83% accepted the offer. This compared to the second quarter of 2016, when only 77% were successful.
These figures should help homeowners who have been deciding whether to remortgage or not. They also show that Britain’s economic uncertainty following the Brexit result has not affected the remortgage market.
The other good news for borrowers is that the interest rates on remortgages are at an all-time low. Borrowers who switch their mortgage to a lower rate can save a great deal.
Rates, however, are predicted to rise soon, so now may be a good time to remortgage. Switching to a cheaper rate mortgage can be used to reduce the monthly mortgage payments, and remortgaging can also be employed to release equity in a property.
Peter Williams, the Executive Director of the IMLA, said:
“Conditions in the mortgage market were particularly good for remortgagers in Q3, with noticeable increases in the number of applications resulting in offers and subsequent completions.
“The low interest rates available to borrowers almost certainly contributed to this increase, with borrowers able to switch on to very attractive deals.”
A commercial mortgage broker has access to the best remortgage deals available and can match a borrower’s requirements to a suitable mortgage.