Remortgagors flock to long-term mortgage deals - moneyfacts.co.uk

Remortgagors flock to long-term mortgage deals – moneyfacts.co.uk

With the current Remortgaging Boost, homeowners are looking for long term security by taking advantage of record low mortgage rates. According to the CML, total mortgage lending has fallen over 11%, but remortgaging now accounts for 1/3 of all mortgage lending. Remortgage transactions are on the rise, having grown over 10% in the last year. While this is a great opportunity for people to pay off debt, it shows that homeowners are strained. The great news is taking advantage of these record rates can alleviate their debt burden and others to make home improvements which all in all is an investment in long term security. Remortgaging is not only sensible to pay off debt, but gives you extra cash to improve your home and pay it off earlier which is a perfect blend of much needed financial security but easing the debt burden on homeowners.

Key Takeaways:

Remortgaging may be a reflection of financial strain as it can be used to simply pay off (or for) everyday items.
Remortgaging is still one of the most popular ways to pay for improvements to the home.
Remortgaging makes sense for a homeowner looking for ways to save for the future.

“Remortgaging can be a great way to do that, particularly if you opt for a long-term fixed rate deal – you can be safe in the knowledge that your repayments won’t change for the foreseeable future, and as rates are so low, those repayments could be far lower than with your previous mortgage deal, saving you money in the process.”