Remortgage applications at two year high

Rise in fixed-rate remortgages

Rise in fixed-rate remortgages

Applications to remortgage are at a two year high.

Mortgage broker Countrywide reported that the number of homeowners hoping to remortgage has reached the highest levels since January 2009.

The rise has been blamed on the fear of a possible rise in interest rates this year.

More of those making applications are also prepared to pay above average for the security of a fixed-rate mortgage.

Of all mortgage applications made in January 32 per cent were for those remortgaging, figures five per cent higher than December.

Countrywide revealed that 84 per cent of all of the mortgage applications they dealt with in January were made on a fixed-rate basis.

Chief executive of the broker Grenville Turner understands the desire for the fixed-rate mortgage calling its boost in popularity “a telling sign that many are prepared to pay slightly more to give themselves peace of mind and stability with regards to their outgoings.”

Turner also explained that over the last two years customers who wanted a good deal on a fixed-rate product have had to move their mortgages to do so.

He says, “Discretionary movers, who typically make up somewhere around half of all transactions are beginning to evaluate whether this is now the time to make a move.”

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