"Our research has revealed that 57% of cases from 2016 were remortgaging to raise capital, compared to pound-for-pound borrowing"
57% of remortgage cases in 2016 were capital raising, suggesting homeowners wanted to take advantage of record low remortgage rates.
Those in the East Midlands borrowed almost double the amount in 2016; while those in the East of England, Home Counties, North West, South East and Wales also increased their debt compared to two years ago.
Doug Crawford, CEO of My Home Move, said: “This overall increase in borrowing suggests that homeowners are taking advantage of the ‘cheap’ remortgage deals which have been around for the past few years, and thanks to the Bank of England base rate cut in August, will remain so for months to come.
“With such low interest rates, using a mortgage to borrow money can be a smart move. Our research has revealed that 57% of cases from 2016 were remortgaging to raise capital, compared to pound-for-pound borrowing, suggesting people were looking to consolidate debt, release equity to fund home improvements or to pay their children’s university tuition fees or first-time buyer deposit, as the Bank of Mum and Dad was raided again.
“Our remortgage activity has been steadily increasing over the past few years, and with the threat of a rate increase due to increasing inflation levels, brokers and consumers are alert to “this won’t last forever” sentiment. We have already seen SWAP rates, that govern the price of fixed rate mortgages, increasing over recent weeks and this will drive further activity."
