Activity in the remortgage market has spiked in recent months, but the LMS survey suggested that people are looking for a cheaper rate rather than being scared of future rises.
Two-in-three people are moving to take advantage of lower rates, compared to the fifth of people who want to protect themselves against future rises.
Remortgaging activity is now at its highest since November 2008, with the average rate now at 2.56%. More than a third (37%) of people who completed a remortgage saved more than £500 each month from their mortgage payments, LMS found.
The number of remortgage loans completed in July was 46,423, 47% higher than the previous month. The value on these loans increased by a similar amount, growing 41% month-on-month to reach £7.2bn.
Andy Knee, chief executive of LMS, said its not policy makers galkvanising the market but the choice of cheap deals.
“However, we shouldn’t forget that the Base Rate cannot be kept on hold forever and the Bank of England is pushing towards a tighter monetary policy. There is no reason homeowners should stall; now is the opportune moment to make the most of competitive rates and we anticipate a continued flurry of activity among homeowners keen to take advantage of this and reduce their monthly outgoings.”
