With Brexit uncertainty wreaking havoc on the nation, many homeowners are rushing to remortgage their properties in a bid to lock in low rates and gain as much financial security as possible.
In October alone, homeowners remortgaged loans equating to £9.2bn, the highest monthly total since November 2008, when it hit £9.3bn, according to figures from UK Finance.
The number of remortgage loans also smashed records, hitting a 10 year peak at 50,500.
Jackie Bennett, director of mortgages at UK Finance, said: “Remortgaging has reached its highest level in almost a decade, as homeowners take advantage of a competitive market and lock into attractive deals.”
The new figures also reflect the large number of fixed-rate mortgages coming to an end.
And with Britain’s imminent exit from the EU threatening economic uncertainty, dramatic changes in property values and the potential for interest rate rises, the abundance of remortgages is likely to continue.
Remortgaging can bring a number of benefits, particularly for those nearing the end of a fixed rate deal.
When a fixed rate period ends, the homeowner usually starts paying their lender’s standard variable rate (SVR) and this is often higher than their introductory rate.
By remortgaging and securing a new fixed rate deal at a more affordable rate, homeowners can keep their repayments as low as possible while also benefiting from the security that comes from fixed repayments over a specified period of time.
Remortgaging can also have benefits for homeowners looking to free up equity. Some homeowners may choose to use the capital they’ve built up in their property to access cash to be spent elsewhere. This is particularly popular amongst homeowners looking for a way to fund home improvements without taking on credit card debt or a loan.
If you’d like to remortgage your home in order to benefit from more financial security in the lead up to Britain’s exit from the EU, please get in touch with the team at TaylorMade.