Great time for re-mortgaging in UK market

Now is a great time to re-mortgage as competitive deals flood the market. More than half the number of people re-mortgaging in May took advantage of the great deals currently on offer, according to research from LMS.

Some 56% of those who re-mortgaged in May reduced their monthly mortgage payments, with around a third reducing their monthly outgoings by up to £500.

The study also revealed that the number of people re-mortgaging to increase the size of their loan rose by 2% to 26%. Meanwhile the volume of people increasing their loan by more than £10,000 rose 3% to 19%.

Drilling down into the findings, one in five (19%) borrowers used the cash released from re-mortgaging to spend on home improvements. 7% opted to pay off other debts and 3% borrowed in order to help their children up the property ladder.

Andy Knee, Chief Executive of LMS, said: “Increased competition between lenders, record low rates and rising housing equity have come together to provide homeowners with a setting that is ripe for re-mortgaging. The number re-mortgaging hit a seven-year high in April and with over half of those lowering their mortgage rate  and a quarter increasing the size of their loan in May, it is clear that many savvy borrowers are taking advantage of the current climate and we expect activity to maintain its momentum.

“We’re also seeing evidence in the market that many re-mortgagors are opting for a fixed rate to guarantee a set rate for a set period. Locking in is very competitive right now with huge savings to be made in the long-run even if it means in the short term they pay a little more. With an uncertain economic climate, knowing what your mortgage payment will be for five years is a very seductive offering for many re-mortgagors.”

At Orchard & Shipman we work with highly experienced financial services partners to offer our landlords the best value and quality financial products on the market including mortgages, buildings and personal insurance. If you wish to take advantage of the great mortgage deals currently on offer or if you want to find out how we could assist you with your financial needs, then visit http://www.orchard-shipmancorporate.com/services/financial-services/ or contact Orchard & Shipman today.