The proportion of searches for remortgages has increased by 5.3% in the last 12 months, according to new analysis from Experian.

The consumer credit reporter revealed that 28.7% of September’s mortgage searches – via Experian’s comparison service – were for remortgages, compared to 23.4% in September last year. Furthermore, the proportion of FTB mortgage searches fell by 5.3%, to 55.3% of searches.

With the political and economic uncertainty currently surrounding the UK, Experian’s monthly credit barometer found that mortgage borrowers are increasingly looking to switch to fixed-rate products, to access lower rates.

Experian revealed almost all borrowers searching via their platform are now selecting a fixed-rate mortgage interest type when looking at repayment options.

Experian managing director of marketplace, Amir Goshtai, commented: “Last month we revealed that mortgage applications had increased by 9.8% year-on-year. Our latest mortgage findings suggest remortgages could be contributing to the rise in applications in the mortgage market as homeowners are increasingly locking in fixed deals amongst a backdrop of economic uncertainty.

“With interest rates relatively low, a typical borrower could save up to almost £2,500 a year by switching to fixed monthly payments from a standard variable product.”

Experian’s analysis revealed that 91.3% of consumers selected a fixed monthly repayment option in September compared to 69% in September 2018 – a growth of 32.3% against the figure 12 months ago.

At present, homeowners could find themselves overpaying by approximately £2,436 annually if they don’t remortgage when their introductory offer ends, and as they slip onto their providers’ Standard Variable Rate (SVR).

“Fixed-rate mortgages provide more certainty and security with outgoings,” Goshtai added. “They also help to aid better planning and budgeting, especially at a time when many external economic factors remain unclear.

“If you are looking for a new mortgage deal, use comparison sites to compare current market offers and check your eligibility.”

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