MORTGAGE borrowers are locking in record-low interest rates as the prospect of a rate rise and higher loan costs loom.
The number of remortgage loans reached 46,423 last month, a massive 89 per cent jump on the same month last year and the most since November 2008, according to estimates from property services group LMS.
Brokers recently told City A.M. that mortgage rates have been creeping off record lows, and are urging people to get good deals before the Bank of England lifts its base rate. An increase is currently expected around April next year.
“Remortgaging has come back with a bite in July, following sluggish levels of activity throughout the latter part of 2014 and first months of 2015,” said LMS boss Andy Knee.
“Despite news that a base rate rise may be on the cards, lenders have not hiked rates and there are still many excellent deals to be had as lenders compete for business. But these will not last forever and borrowers should consider remortgaging now to avoid missing out.”
The total amount of equity withdrawn from remortgaging in July stood at £1.27bn, a 183 per cent jump from a year earlier, LMS said.