Remortgagors leap on falling rates: LMS

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Remortgagors in July leapt on falling mortgage rates following the UK’s decision to exit the European Union, according to data from LMS.

The figures show that 63 per cent of remortgagors secured cheaper deals last month, up 7 per cent from 56 per cent in May.

LMS also says a larger proportion of remortgage customers acted to cut their monthly repayments in July.

More than two in five (43 per cent) took this step, up by eight percentage points from 35 per cent in May when there was growing speculation about the outcome of the Brexit vote.

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More than one in three (35 per cent) who remortgaged to reduce their payments in July reported a monthly saving of £200 or more.
LMS chief executive Andy Knee says: “July’s figures show many people were keen to press ahead with plans to remortgage, regardless of growing speculation that a base rate cut might be on the cards.

“Despite uncertainty in the immediate aftermath of the referendum, the property market very much remains open for business. The shabby savings rates on offer mean that, when it comes to raising money for home improvements or clearing other debts, many people will naturally consider the wealth they have gained as a result of sustained house price rises.”