Findings published by the lender, showed that remortgage activity was 87% higher in August than the same period last year, while in June applications increased by 18% on the previous year.
As the Bank of England readies itself for a base rate rise, Accord urged brokers to act fast and encourage customers to take advantage of record-low mortgage deals before interest rates begin to creep up.
The average two-year fixed mortgage rate fell by 0.16% at the beginning of July, to 2.76% at the start of August, which Moneyfacts reported as the lowest rate on record.
David Hollingworth, associate director, communications, at London and Country Mortgages, said with the Bank Base Rate (BBR) at a record low for so long, borrowers were likely to have become complacent about mortgage rates.
“However, some mortgage rates have ticked up slightly and, as the discussion around a BBR rise intensifies, more borrowers are bound to review their situation,” he said.
“The mortgage market remains highly competitive and many will find that they can cut their mortgage rate by switching to a fixed rate, which could slash their monthly payment as well as offering protection against any potential rise in interest rates.”
This week, the Bank of England reported that remortgage approvals in August hit their highest level since October 2008. Spectators believe that this boost in remortgaging could be a reaction to Mark Carney’s suggestion that interest rates could rise ‘at the turn of the year’, coupled with competitive mortgage deals.
David Robinson, Accord’s national intermediary sales manager, added: “Homeowners have enjoyed the choice of low-value loans for several years, and we are still in the period of extremely low rates. This won’t last forever, which is why now is an ideal time to ask clients who are on already their lender’s standard variable rate, or who are coming to end of the fixed rate portion of their mortgage, if they are considering remortgaging.
“Despite pundits speculating when a rate rise may occur, Mark Carney stated the exact timing cannot be predicted in advance. That’s why brokers need to help their clients to be financially savvy and look at whether they would be better off locking into a fixed rate now whilst market conditions are still very favourable to borrowers.”
