Last Updated on 15.2.23 by Gorvins
Autumn has witnessed a large surge in the number of remortgage loans in the past month as low affordability means homeowners want to lock into new competitive deals.
According to LMS, there was a 12% increase in remortgage loans from August to September, putting the number at 28,686. The year on year figures also show an increase of around 1,000 loans when compared to September 2014. The increase could be put down to a drop in the average Loan-to-Value (LTV) rate, which fell in eight out of 10 regions across the country, meaning remortgaging is more affordable and manageable for homeowners. Interestingly, the North West and North East observed the largest drops in remortgage LTV.
When compared to the same time last year, the amount of equity withdrawn from remortgaging was up a whopping 77% per customer. Although this figure is slightly less than the August amount, the year on year figures shows it is up from £17,644 to £31,241, showing a boost of confidence in the market.
Monthly Savings Trigger Autumn Rush
With the possibility of a rise in base rate, savvy borrowers are tapping into the low LTV rates now as a way to cut costs and reduce their monthly outgoings for the future. For those not on a fixed deal, a base rate interest rise, which hasn’t been seen since 2007, may mean an increase in monthly payments.
It has been well documented that house prices are on the rise all over the country, meaning those who were suffering with their mortgage have now been able to reassess their finances. This has led to many homeowners opting to release equity on their property or reduce their LTV rates whilst competition is high amongst mortgage lenders.
Gorvins – the Residential Property Solicitors
There are many reasons you may consider remortgaging your home, all of which Gorvins can provide the legal expertise you require:
- Cheaper repayments
- Release of equity
- Transfer of equity
- Consolidate debts
If you are looking into remortgaging your home, our specialist Residential Conveyancing team at Gorvins will take care of all your legal needs. For a no-obligation fixed-fee quote, call us today on 0161 930 5151, or send an enquiry using our online contact form.