Remortgaging reaches record levels, says lender

Remortgaging reaches record levels, says lender


Todays other news
Nationwide is reducing stress rates by between 0.75 and 1.25...
It's one of the first deals of its kind since...
This month’s increase is smaller than usual, and the lowest...
This hybrid product is designed for borrowers aged 50 and...
One in 10 have no cash savings, another 21% have...


Remortgaging has reached a record high, rising to 39% of all mortgages, according to The Mortgage Hut.

The number of remortgages has risen by 10% over the last year, with more homeowners finding more attractive rates by switching mortgage companies.

Together with the recent interest rate rise, the influx of new mortgage products this year has aided demand for remortgaging.

According to managing director of The Mortgage Hut, Chris Schutrups, lenders have widened the criteria to more niche markets by introducing new products.

“More and more homeowners do not fit the conventional box for lenders, such as contractors and the self-employed,” he said. “However, over the last 12-18 months, many lenders have recognised that the profile of homeowners is changing and they need to adapt.”

Many homeowners and landlords who have been stuck with lenders on less than competitive interest rates – or higher standard variable rates – have been able to switch to new lenders, said Schutrups.

According to Schutrups, rising property prices have also had an impact on remortgage growth, predominantly in London and the South East. Homeowners have opted for reinvesting in their property by refurbishing or adding an extension, rather than moving, which can be much more expensive.

For example, homeowners moving to a £600,000 property would need to find £24,000 for the stamp duty, plus removal costs and estate agents’ fees that could exceed £7,000. However, a single-story extension can cost between £25,000 and £85,000, and a loft conversion from £35,000 to £60,000.

“Homeowners are seeing some down valuations creep into the market as confidence from recent good times have been met by some caution by surveyors who have generally err on the side of caution,” Schutrups said.

“We expect to see the demand for remortgaging continuing to rise in 2018, especially if there are further rate rises. There is likely to be a shift towards more consumers considering five-year fixed rates, as the risk of rate rises remain for the time being.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Introducer Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
It's one of the first deals of its kind since...
This hybrid product is designed for borrowers aged 50 and...
One in 10 have no cash savings, another 21% have...
Buyers can receive real-time information about the likelihood of getting...
Before inflation rose, some analysts hoped for four cuts this...
Nationwide has gone in the opposite direction to the Bank...
Recommended for you
Latest Features
Nationwide is reducing stress rates by between 0.75 and 1.25...
It's one of the first deals of its kind since...
This month’s increase is smaller than usual, and the lowest...
Sponsored Content
Historically second charge mortgages or secured loans as they are...
Lenders must say what they mean and mean what they...
Fraudsters attacking the conveyancing sector, successfully stealing large sums of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here