2016 best year for remortgages since 2009

Last year was the best for remortgages since 2009 as homeowners locked onto rock bottom mortgage rates, research from LMS has found.

In 2016 there were 384,950 remortgages, 15% more than in 2015 but 9% fewer than in 2009.

There were 36,850 remortgages in November alone, the highest number since July 2009.

Andy Knee, chief executive of LMS, said: “Remortgaging was driven by record low rates throughout the year, enabling homeowners to make substantial savings to their monthly outgoings.

“Anticipation of interest rate rises in recent months have also encouraged more people to remortgage with many opting to fix for longer.

“We’re already witnessing surging where the last lender to raise rates experiences huge application volumes as buyers desperately try to take advantage of the lowest rates.”

Knee added: “10-year fixed term mortgages are also becoming increasingly popular as people seek longer-term security while the terms of Brexit continue to be thrashed out.”

Before the financial crisis in 2008 there was £120.4bn of lending by value, 45% more than 2016’s lending total of £65.7bn.

However remortgage activity would go on to plumett by 55% in value and 52% in volume between 2008 and 2009.
It has now bounced back in value by 64% from 2010 levels.

Currently a third (32%) of borrowers expect mortgage rates to increase in 2016, while confidence is expected to fluctuate when Article 50 is expected to be triggered in March.

Two thirds (66%) of people who remortgaged in November plan to remortgage again within the next four years to keep capitalising on the low rates available.

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Written by: Houseladder