The value of a house for remortgage reached a 13-month high in November, according to the National Mortgage Index from Mortgage Advice Bureau.

The average value of a house for remortgage rose to £304,514 in November, up 5.6% annually from £288,424, and the highest amount seen since October 2014.

As a result of rising house prices, the Index showed remortgagors experienced an increase in the level of equity in their homes, from £127,180 to £134,360 over the past 12 months.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “With a large portion of many people’s wealth tied up in their property, homeowners should ensure they are making the most of this asset. As house prices continue to rise, homeowners are benefiting from increased housing equity, enabling them to access competitive remortgage deals.”

Two-year trackers dip under 2%

In addition to increased equity homeowners are also continuing to benefit from record low mortgage rates, with two-year tracker rates dropping below 2% (1.98%) for the first time.

Based on November’s average remortgage loan size of £170,154, borrowers will now pay £720 a month for a two-year tracker mortgage, which is £58 a month cheaper than if they chose a two-year fixed product with an average rate of 2.67%.

Even if the Base Rate was to rise by 0.5%, and tracker rates increased by the same amount (to 2.48%), borrowers would still be paying less each month compared to the average two-year fixed mortgage (£762 vs. £778).

Murphy added: “For those who opted for a two year tracker, the decision has certainly paid off as the Base Rate is still at an all-time low. Typical tracker rates have dropped significantly over the year and remain lower than fixed rates. However, there is always the risk of rates changing and many borrowers will prefer the security associated with fixed mortgage payments.”