Remortgaging reaches six year high

People are remortgaging their homes at the highest rate since 2007, with the number of remortgaging valuations 9% ahead of the previous annual record, set six years ago.

The research, carried out by chartered surveyors Connells Survey & Valuation, also found that remortgaging also saw the fastest growth of all sections of the valuations market.

John Bagshaw, the firm’s Corporate Services Director said: “Despite signs of economic growth, many in the UK are still coping with a fall in real wages. As a result, household finances are still feeling a serious strain, despite the renewed sense of economic optimism.

“So given the current record low interest rate, remortgaging can provide a real opportunity to boost the monthly sums. Even since a year ago, remortgaging interest rates have fallen, and the choice of deals on the market has dramatically improved.

“While economic growth will eventually feed into wages, there may be a long wait until this happens. So – for the time-being at least – lower mortgage payments will continue to provide a vital buffer for many households.”