Homeowners have spent the summer months snapping up new mortgage deals ahead of the biggest maturity period for five years.
Accord Mortgages, a subsidiary of Yorkshire Building Society, has reported a 60 per cent increase in the number of remortgage applications in June, July and August compared to last year.
August saw the greatest increase in remortgage applications, up 68 per cent on the same month last year, according to Accord. Homeowners taking action to secure a new mortgage deal are likely to see their monthly repayments fall significantly after several years of house price rises and low interest rates.
According to data for CACI, more than £35 billion of mortgages are due to mature in September and October. With 70 per cent of these deals arranged through intermediaries, clients are looking to lock in a new deal while rates are still competitive.
David Robinson, national intermediary sales manager at Accord, says: “It’s positive that borrowers are taking action before their deal comes to an end. It’s great news for intermediaries, who have an important role to place advising their clients on the best remortgage deal for them.”