The percentage of people now expecting a rate rise is now 8% lower than in January 2015 last year, according to research from LMS.
However, this has not dissuaded homeowners from remortgaging, with almost two-thirds of people (65%) still remortgaging to take advantage of lower interest rates.
More than a third (36%) who remortgaged were able to reduce their payments by up to £500. Almost a third (29%) of remortgagors were able to increase the size of their loan, of which 72% increased the size by more than £10,000.
More than eight in ten (83%) people deciding to remortgage chose to switch lenders.
There was also a five percentage point rise from 41% in December to 46% in January 2016 in the number of people opting to use brokers or mortgage advisers in the remortgage process.
Andy Knee, Chief Executive of LMS, commented:
“With the looming possibility of a Brexit, and in the midst of global uncertainty and shaky markets, we’re seeing indications from the Bank of England of a base rate rise being pushed back further. Some have predicted a rise to be delayed until as far as 2019.
“However, borrowers appear to be wiser, and are still remortgaging to reduce costs rather than becoming complacent. Remortgage lending rose by 49% to £6.2bn in January from £4.2bn in December and was also recorded as 45% higher than the same time last year. With the cost of a fixed-rate mortgage at historic lows, plummeting swap rates and so many great deals on the market, it’s never been a better time to lock into low interest rates.
“It’s also encouraging to see borrowers taking greater control of their finances and seeking advice, especially at a time when many property investors in particular are hoping to complete their transactions before April tax changes come into effect.”
