Remortgage activity surges as borrowers attempt to beat further rate rises

Remortgaging activity spiked in February, as searches for homeowners wanting to remortgage after just six months climbed by 30%, according to new research from Legal & General Mortgage Club’s SmartrCriteria tool.

Rises in the Bank of England’s base rate to curb inflation could be prompting borrowers to lock into low fixed-rate deals, according to the Legal & General Mortgage Club.

The buy-to-let market remains resilient, with searches for first-time landlords rising by 23% in February. With house prices hitting record highs, the Bank of Mum and Dad continues to support demand. Searches for those with gifted equity climbed by 119%.

“The cost-of-living squeeze and rising interest rates are clearly driving borrowers to remortgage and lock into low fixed-rate products that are still available on the market,” Legal & General Mortgage Club director Kevin Roberts.

“Others are exploring alternative means of managing their finances perhaps by taking out interest-only mortgages. Whether borrowers are looking for alternative solutions or simply want to lock into a fixed-rate mortgage for the future, advisers have a critical role to find products for these borrowers that can help them keep their monthly repayments low, while ensuring they have a mortgage that continues to meet their needs.”

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