This is based on the latest figures from the Council of Mortgage Lenders showing that remortgaging in June 2004 rising slightly compared to the same time last year.
"The Bank of England's Monetary Policy Committee took the decision to raise the base lending rate to 4.75% on the 5th August, and this will serve further to fuel growth in the remortgage market,'" claims Andrew Frankish,
Mortgage Talk's Operations Director.
"Only a few years ago, remortgaging was very much a minority activity, but increased competition and choice in the marketplace has seen a huge increase in the number of homeowners looking to switch lenders and save money.
Statistics from the Council of Mortgage Lenders show that in June, remortgages accounted for 39% of total lending. Just four years ago, this figure was only 25 percent," adds Frankish.
"Moreover, now that interest rates are starting to creep upwards, many borrowers are eager to take advantage while they can of the low rates that are still available. This is the ideal time for homeowners to take stock of their finances, and to look at what the market can offer them," he states.
Mortgage Talk's own statistics indicate an almost equal split among remortgage customers choosing between fixed and discounted rate products.
"At the moment, some borrowers are looking for medium term stability, which is driving them to choose a fixed rate mortgage. Equally, others are aiming for the lowest possible monthly repayment cost, and choosing discounted or
tracker deals," comments Frankish.
Another factor identified as driving ahead remortgage lending is the continuing rise in house prices. 'Many regions in the UK are still experiencing strong growth in house prices. With mortgage rates still at low levels, this is encouraging borrowers to invest in home improvements, rather than looking for a new property to buy," he adds.
"Consumers are now tuning in to the benefits of remortgaging as an effective way to save money on their monthly bills. A regular review of your mortgage arrangements is one of the simplest ways to ensure that you maximise the investment opportunity that your home represents," concludes Frankish
