04 October 2016 11:30:13
|Brits flock to remortgage following interest rate cut|
Following the Bank of England's decision to cut UK interest rates to a new historic level of 0.25%, to help shore up the economy following the Brexit vote, remortgaging in Britain has surged to five-year high.
New figures from Legal Marketing Services show remortgaging increased 8% month-on-month and massive 45% on the same period last year, as cash-savvy Brits switched mortgages to lock in the historic low rates.
Overall remortgaging has increased 40% from 2015 to 2016, with experts citing a more cautious approach from homeowners, as a reaction to the uncertainty caused by Brexit. This uncertainty is also thought to be the main reason that, despite house prices increasing, the average amount borrowed declined by 6%.
Nevertheless, the marked caution of remortgagers does not seem to have followed through to all areas of the housing market, with home builders reporting largely unchanged sales. Whether this was because people had already reserved properties before the vote, or because the government is scrapping large parts of its Help-to-Buy scheme is unclear. However, given the government's new openness regarding their desired timetable for Brexit, and the impact it has had on the pound, we will no-doubt see very soon.