Andy Knee, chief executive of LMS, comments on the CML monthly breakdown, August
“Remortgaging saw a seasonal dip from July to August but remains stronger than at this point last year; the result of a sunnier economic setting with wage growth in real-terms and low inflation giving a helping hand to consumer spending power. Activity has also seen an uplift of 25% this summer compared to last summer.
“After a slow start to the recovery, remortgage activity now appears to have gained momentum and we expect steady levels of activity throughout the rest of the year. This has been driven by the competitive deals still available as lenders seek to boost their business levels before the year end and means homeowners are keen to capitalise on the offers before circumstances change and rates increase.
“Many young homeowners have only experienced rates at record lows, and it would be easy for some to become complacent that such offers will remain for the long-haul. Remortgaging now, however, allows you to fix at a lower rate – at a time when speculation about a rate rise continues to intensify – and reduce your monthly outgoings before any increase leaves you with a nasty shock.”
