The rush to remortgage begins
Borrowers took the opportunity to get ahead of the game before the biggest mortgage maturity period in five years started this month with a surge in remortgage applications over the summer, according to Yorkshire Building Society.
The mutual recorded a 68% year-on-year increase in remortgage applications from August 2016 to August 2017, as £35 billion worth of mortgages in the UK are due to mature this month and next, the biggest maturity period since 2012 according to data from CACI[i].
The Yorkshire’s figures also show a significant uplift in remortgage applications during June and July, with a 57% and 58% respective increase in the amount of applications from the same periods last year.
Charles Mungroo, Mortgage Manager at Yorkshire Building Society, said:
With so many mortgage deals coming to an end during September and October, it’s not surprising that we saw, and continue to see, heightened remortgage activity over the summer months.
It’s encouraging that borrowers have been taking action before their deal comes to an end and we’re hopeful this trend continues so they could potentially start to see their monthly repayments reduce significantly thanks to low interest rates and the recent increase in house prices in some areas that will improve their mortgage loan-to-value.
[i] CACI’s Mortgage Market Database, comparison of annual projected mortgage maturities from February 2013, February 2014, February 2015, February 2016, and February 2017.