Remortgaging was up 40 per cent in September compared with a year ago, according to the British Bankers’ Association.
The strength of these remortgaging numbers reflects the number of cheap mortgage deals available, as well as borrowers’ concerns that interest rates are likely to rise sooner rather than later. However, with Mark Carney, governor of the Bank of England, suggesting over the weekend that rates rises are a ‘possibility not a certainty’, it remains to be seen whether borrowers will lose the urge to remortgage.
Mr Carney did urge households to prepare for tighter monetary policy regardless and with fixed rates likely to remain competitive over coming months, there will be plenty of deals to tempt borrowers. Lenders are keen to lend and have plenty of funds to do so – as we move towards the end of the year it is possible that we could see some exceptional deals as banks look to meet their targets for the year. Borrowers who are coming up to remortgage should therefore consider taking the plunge as some of these fixed-rate deals will be almost too good to miss.