Remortgage boom as cost-of-living increase bites

The increased cost-of-living is something that is affecting everyone in the UK, with gas and electric prices up 75% and 52% respectively since 2010 according to the Bank of England, so it is not difficult to see why people are looking to save money. ONS (Office for National Statistics) figures show that inflation rates are the highest they have been in 30 years which further adds pressure to already strained finances.

Add this information to the number of stories that say we may have hit peak home prices in this property cycle, and it’s easy to understand why some intermediaries are looking for storm clouds on the horizon – but we spoke to one broker who is still making hay while the sun shines.

Daniel Jackson (pictured), of Simply Mortgages, is based in Trawden, Lancashire – a picturesque town that has just been named as one of the best places to live in the UK by the Sunday Times.

While 2021 kept him busy with new mortgage business riding the post pandemic tidal wave of house buying and selling, this year he has seen a shift with people who are looking to save money – and he’s helping them with remortgages.

“For the last six months in particular, we’ve been focusing on remortgage activity and to see if we can save customers money on deals - that’s our main profit,” he said. As with the rest of the UK, he is seeing new mortgage business slowing down. Although he is still seeing huge demand for houses, the supply is just not there, leaving customers to fight over what is available.

Jackson lives and works in Trawden but has customers throughout Lancashire and across the UK. He is very fond of the area and says his local knowledge is very much valued in his village. The community spirit is so great that when the pub, shop and community centre were at risk of closure, the villagers came together to rescue their beloved local hubs.