Remortgage Loans See Dramatic Increase
Since the base rate of interest for loans and savings feel to its all time low of just 0.5 per cent, two years ago, there has been very little activity in the remortgage market, as borrowers have chosen to remain on their existing lender’s standard variable rate loan, as this has often been the cheapest option for them.
However, recent talk of an imminent increase in the Bank base rate from the Bank of England and many financial experts has led to a sudden surge in remortgage activity, as borrowers try and switch their home owner loan or mortgage to a fixed cheap rate loan before interest rates increase.
The number of people looking to switch their home owner loan increased by a staggering 107 per cent throughout the month of February, compared to January figures, according to the latest statistics from Connells valuers and surveyors.
Connells also said that they have also seen the number of valuations they are completing increase across the whole of the housing and home owner loan market, which suggests that consumer confidence is starting to return to the market.
Overall, the number of completed valuations for all types of home owner loans increased by around 53 per cent throughout February, not only from people looking to switch their loan, but also from individuals wanting to move house or enter the housing and home owner loan market for the first time.
Paul Staley of Connells said that although activity is picking up across all sectors of the home owner loan and mortgage market, more needs to be done to encourage first time buyers.
“While it’s encouraging to see a slight improvement for first time buyers, they still face an uphill battle to get their first home. They are the lifeblood of the housing market and without more affordable mortgage products for them we won’t see a sustained recovery.”
