Almost two-thirds of homeowners who decided to remortgage in February did it to get a better deal, the latest research from outsourcing property services provider LMS shows.
Most of the remortgage customers (81 per cent) used the opportunity to switch their lender.
Around a third (31 per cent) increased the size of their loan, with nearly a quarter (23 per cent) extending the amount by as much as £10,000.
Some 40 per cent used a remortgage to reduce their monthly payments by up to £500.
Despite the rock bottom inflation rate and indications that real wages have started to lift up, British households continue to feel the pinch and need more cash to patch up their finances, LMS finds.
Nevertheless, there is a definite sign that homeowners confidence is improving, as the proportion of people who expect a further rise in interest rates has more than halved from January (30 per cent) to February (14 per cent).
Fewer people sought the advice of an independent adviser in February (36 per cent) than in January (46 per cent), as many are confident to make the switch to a new deal alone.
“Optimism, while welcome, should not cause borrowers to become complacent. Swap rates have been on the rise, and have led certain competitors to withdraw their products days after release. The upcoming elections and pension freedoms will also add to uncertainty in the coming months, which could cause the mortgage landscape to change in the coming months and affect the offers available. Customers should therefore shop around for good deals and – if thinking of remortgaging – should not delay from switching for too long,” LMS chief executive Andy Knee said.
