The number of remortgages increased by 17 per cent in April showing that more borrowers are looking to get a better deal.The LMS remortgage report shows remortgaging rose from £2.9bn in March to £3.3bn in April, its highest proportion of total lending since October 2012.
Remortgages accounted for 28 per cent of total gross lending in April, while the average loan amount increased by 0.7 per cent, from £139,280 to £140,260.
The number of remortgages is 8 per cent lower than in April 2012, when the figure was 26,162, although the average loan amount is 8 per cent larger, up from £129,957.
Remortgaging can either release some cash from the property to spend in your chosen way or it can simply put the mortgage on a better rate. When introductory deals on variable and fixed rates come to an end most people should speak to their broker again and look for another deal.
While remortgaging may come with a phalanx of fees from a fresh valuation to lender arrangement charges it could be worth it.
Finding a deal that is 0.5 per cent lower than your current loan with a big mortgages broker could end up saving up thousands of pounds more in the long run.
The short-term deterrent of fees may be a small price to pay when you save so much over the mortgage term so it is worth getting in touch with a mortgage broker for an advised discussion.
Get your remortgage right
When searching for a mortgage for the first time most people have their consumer-focussed hat on and scour the market. They either search around banks and building societies directly or access the wider market through mortgage brokers.
Those who use brokers will know the benefits of staying in touch to discuss the latest developments in the mortgage market and how they can benefit. Those who go directly may fall into the potential trap of remortgaging with the same lender without searching the market.
Many borrowers will also keep the same mortgage when it goes back to the higher reversion rate after the initial offer of a particular rate has expired.
Once the mortgage is in place and your in the house it can be easy to leave your consumer hat at home but it is just as important.
Using a broker can keep you at the cutting edge of the latest developments and could save you tens of thousands of pounds.
A property is the biggest financial commitment most people will ever make so it makes sense to give it a service on a regular basis.
Think of a broker as the mechanic who gives your car an MOT, finds the problems and fixes them before they start to become much more expensive problems.
A broker can look under the bonnet of your mortgage as well as looking at putting it in the context of the economy and stop you paying more than you need to. That is the benefit of a remortgage consultation.
There is also the traditional use for remortgages to free up some spare cash and a broker can fiddle around with the deal to make this work too.
Total equity withdrawal from remortgaging stood at £454.5m in April, up £20.2m on the £434.3m figure for March.
More borrowers are alert to the possibilities of remortgaging and could reap the potential benefits by using a whole of market broker.