Nearly eight in 10 (79%) remortgagers switched lenders in October as competitive deals soar, new figures have revealed.
According to the latest research from LMS, this is an 8% increase from the 71% of borrowers who switched lenders last month.
Only half of remortgagors have switched before the end of their current deal, down from 60% last month.
Half remortgaged only because they had come to the end of a current deal and are therefore not proactively taking advantage of the record low rates available.
The survey also revealed that more than a third of remortgagors (37%) lowered their monthly mortgage payments by switching to a lower rate, of which 3% reduced their payment by more than £500.
Almost a third of remortgagors (31%) chose to remortgage to increase the size of their loan, up by 3% from September. More than one in five (22%) increased it by more than £10,000.
Of the remortgagers who increased the size of their loan, 59% did so in order to make home improvements, while more than a quarter (27%) did so to pay off other debts. A small number also used the extra cash to pay for a holiday, school fees or to help other children buy property.
Andy Knee, chief executive of LMS, said: “October witnessed record levels of remortgaging activity as customers respond to the availability of competitive mortgage deals currently on offer. The Bank of England is now likely to hold interest rates at bay until well into 2016, making it a fruitful season for remortgaging. On top of rock bottom rates, the wheels are in motion for continued momentum; UK housing stock values are increasing; and lenders are open for business.
“Borrowers not thinking about the option of remortgaging just yet should be aware that they can save hundreds of pounds by locking into the right deal. The value of a broker should also not be underestimated, as they can be help to guide customers through the process, and select an appropriate product based on the borrower’s personal circumstances.”
