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Remortgages doubled in the last six months of 2015

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
05/01/2016

Borrowers rushed to switch deals in the second half of last year to take advantage of record low rates

Applications for remortgages increased by 94%, almost doubling, in the six months to the end of November 2015 compared to the same period in 2014, according to data from Yorkshire Building Society.

The biggest boost came in September when remortgage applications rose by 139%, while the October figure shot up by 99%. In November, 125% more borrowers applied to remortgage than during the same month in 2014.

The rise represents a total increase in remortgage applications of 120% year-on-year in September, October and November.

Rates at record lows

Mortgage rates dropped to an all-time record low in July, according to Moneyfacts. Reductions were most prevalent for higher loan-to-value mortgages, but all sizes of loan experienced significant rate cuts across the mortgage market.

Remortgage rates have continued to fall since the summer, with the average two-year fixed remortgage mortgage rate at 2.83% at the beginning of June, falling more than 0.40% to 2.40% by the end of November. The drop was even more marked for five-year fixed rates, with the average remortgage rate falling 0.50% from 3.24% to 2.71% by the end of November.

Rachel Springall, finance expert at Moneyfacts, said: “These low rates and vast quantity of deals will not be around forever and there is uncertainty as to when the market will change, so if borrowers are in a position to re-finance, now is as good a time as any.”

Brendan Gilligan, product manager for Yorkshire Building Society, added: “Although the hints of a Bank of England Base Rate rise have now quietened, it would seem that the near-to record-low mortgage rates are still tempting many borrowers to consider whether they can get a better deal and lower their repayments.”