Brokers expect 'remortgaging surge'

Brokers are forecasting an increase in remortgaging over the next 12 months as their clients aim to cut costs following rate reductions, according to the Nottingham Building Society.

Related topics:  Mortgages
Rozi Jones
16th July 2015
house growth graph this is actually the green one

Its study found 58% of brokers expect a rise in remortgaging inquiries with nearly one in 10 (9%) forecasting a dramatic increase.

Around 48% of brokers believe there will be more five-year deals while 40% are forecasting an increase in 10-year deals.

Brokers’ confidence on remortgaging is supported by consumer research which shows that 16% of homeowners are considering switching between March and August this year. The biggest group of homeowners contemplating this are those aged 25-34, many of whom may be in their first home and want to move on to better deals. However, 19% of homeowners aged 45-54 and 9% of those in the 55-64 category, are also thinking of doing this, but The Nottingham’s research suggests that many people aged 40 and over have struggled to secure new deals.

Brokers are also reporting a rise in customers giving up on remortgage and mortgage deals because the process has become more time-consuming and difficult – more than two out of five (41%) say they’ve seen an increase in customers giving up.

Ian Gibbons, Nottingham Mortgage Services Senior Mortgage Broking Manager, said:

“Brokers believe remortgaging could be a major growth area in the coming year and that is reflected in the new deals being launched by lenders.

“However there remains an issue about customers giving up on applications because the process has changed since they last took out a home loan which underlines the need for the expert support provided by brokers and the whole of market service.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.