Remortgaging Rises 53% Yearly
The total number of remortgage valuations saw a 53% increase in October compared to the same time last year.
The figures show despite the seasonal fall, which saw re-mortgaging activity in October drop 21% on September.
Homeowners on a lender’s Standard Variable Rate (SVR) mortgage could be paying an average of £4,000 a year more than they need to compared to what they would pay if they fixed their mortgage now.
These statistics revealed almost two million borrowers were on an SVR above 3%. By remortgaging, these borrowers could save as much as £15,000 over a five-year fixed deal. One month’s worth of savings could pay for five weeks of food shopping, calculated at an average £58.80 per week.
Many borrowers are also jumping at the chance to remortgage to release equity and upgrade their house with low interest rates making it easier for home movers to climb the property ladder.
There are also reports of a 25% growth in buy-to-let valuations between October this year and the same time last year, while first-time buyer valuations increased by 20% over the same period.