Two thirds (66 per cent) of homeowners remortgaging an existing property in April did so to take advantage of lower mortgage rates, according to research from LMS.
The property services company found that 42 per cent of borrowers remortgaging in April did so to lower their monthly payment, and 3 per cent of those saved as much as £500.
More than one in five (21 per cent) increased the size of their loan – 14 per cent did so by as much as £10,000. Releasing equity in their home meant that 16 per cent were able to fund a home improvement, while 9 per cent said they would use the extra capital to consolidate their existing debts.
Andy Knee, chief executive of LMS, commented: “Homeowners choosing to remortgage currently are able to take advantage of some excellent rates from lenders, whether they choose to do so to free up some capital or to simply reduce their monthly mortgage burden.
“The government’s Funding for Lending Scheme (FLS) has encouraged competition in the remortgage market and we expect to see more homeowners taking advantage of this over the coming months.”
