A survey carried out by LMS found almost 23% of clients said the anticipation of an interest rate increase was the main factor that encouraged them to remortgage. This was an increase on the 14% who expected this when asked in September.
A further 6% of customers said they expected interest rates to drop within the year, highlighting a 3% decrease from September.
This sentiment has been credited as the driving force behind the increase in popularity of five-year fixed rate deals, rising from 8% in September to 19% in October, as customers opt for increased stability during recent market upheaval.
Subsequently, popularity in two-year fixed rate products dwindled, down from 37% for a previous mortgage to 25% now.
Andy Knee, chief executive of LMS, said the anticipation of a rate rise within the next year and the lead up to Christmas, against a backdrop of political and economic uncertainty was the reason people decided to remortgage in October.
The research also found 59% of remortgagors consulted a broker to advise them on what they should do, an increase from 52% recorded in September.
It found customers were less confident in making decisions by themselves in the month of October, with only 36% of people saying they felt confident enough to remortgage without a broker’s help, compared to 43% who said the same in September.
Knee added: “The plethora of mortgage products available can present a bit of a minefield for homeowners when choosing what to go for. Product numbers are up 4% just since September and 8% since the referendum.
“Consulting a broker is always advisable to help navigate the complex mortgage market and help get the best deal available to you, especially at a time when the market is in a state of flux and hyper competitive.”
