Remortgaging Hits Peak in September as Homeowners Seek to Lock in Better Rates
The latest data from LMS shows a significant increase in remortgaging activity in September, as many homeowners look to secure better mortgage deals amid rising monthly payment costs. With the average monthly payment rising by £370.13 for those who remortgaged, it’s clear that more borrowers are feeling the financial squeeze and are eager to take steps to manage their mortgage expenses.
Homeowners Opt for Fixed-Rate Mortgages to Secure Stability
The trend towards fixed-rate mortgage products has become more prominent, with 44% of borrowers opting for two-year fixed-rate deals in September, making it the most popular choice. This indicates a strong desire among homeowners to lock in stable payment terms in the short term, despite forecasts predicting a drop in rates by 2025. Five-year fixed-rate products also saw significant uptake, representing 42% of the market, as many borrowers looked to secure long-term certainty for their mortgage payments.
Equity Release and Loan Size Changes on the Rise
The report also highlighted a notable trend in loan size adjustments during the remortgaging process. In September, 49% of homeowners chose to increase the size of their loan, while 31% said their primary reason for remortgaging was to release equity from their properties. This suggests that borrowers are taking advantage of remortgaging not only to manage their monthly payments but also to access additional funds for other financial needs. On the other hand, 32% of homeowners saw no change in their loan amount, and 19% reduced their total loan size, reflecting a varied approach among borrowers.
Seasonal Surge in Remortgaging Activity
According to LMS Chief Executive Nick Chadbourne, the usual seasonal uplift in remortgaging activity has returned as expected. “As the summer ended, we were waiting to see if the usual seasonal remortgage uplift would kick in, and it has,” he said. The data indicates that over 33% of all mortgage product expiries for 2024 will occur in the final quarter of the year, driving up remortgaging instructions. The end of December is set to be the busiest period, with more product expiries than any other month in 2024, making it a critical time for homeowners considering their options.
What This Means for Homeowners
The surge in remortgaging activity highlights the importance of staying informed about mortgage options, especially in a changing economic environment. For homeowners who are facing rising monthly payments or those looking to release equity, remortgaging can offer an effective way to manage costs and access funds. However, with so many options on the market, finding the right deal can be challenging.
Partner with Mortgage Tek for Expert Remortgaging Solutions
If you’re considering remortgaging, Mortgage Tek can help you navigate the process smoothly. Our team of experienced mortgage brokers specialises in finding the right solutions for homeowners, whether you’re looking to secure a better rate, increase your loan size, or release equity. With our personalised approach, we ensure you get a deal that fits your unique financial situation.
Don’t wait until the last minute to explore your remortgaging options. Contact Mortgage Tek today and let us help you secure a mortgage solution that aligns with your financial goals.