September was not a great month in terms of remortgaging, as figures plummeted following the aftermath of the Brexit decision. However, in a dramatic turn of events remortgaging has bounced back in style and has hit record heights for the month of October.
The value of remortgaging reached an impressive £6.8 million in October, which was up by a fifth from the same time in 2015, in what is the highest remortgaging value recorded since 2008 according to data released by LMS.
“The remortgage market has enjoyed a revival since September’s post-Brexit low” commented Andy Knee, the chief executive of LMS. “There are several key driving forces behind this revival and some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities.”
During this time of political and economic uncertainty people appear to be anticipating a rise in rates next year, and homeowners in the UK are trying to make the most of involving themselves in the record low rates which is sparking this remortgaging revival according to LMS.
It wasn’t just the value of remortgaging that was the impressive factor in October though, it was also the frequency of it, as the average term of a remortgagers previous mortgage fell by 12% which is the most frequently people have remortgaged since March 2009. So what else has caused these impressive October statistics?
“Another factor is that homeowners are cautious of what the future may hold” Andy Knee continued. “Political and economic uncertainty stemming from June’s EU referendum result has affected people’s priorities, and families are seeking long-term security. While we wait for the outcome of Brexit negotiations, some homeowners are locking in low rates and fixing their monthly repayments.”
So hopefully we will continue to see these impressive figures maintained or even improved upon in the upcoming months.