"With an estimated 1.8m fixed rate deals due to end this year according to UK Finance, the remortgaging boom comes as no surprise."
UK homeowners are increasingly reassessing their mortgage options due to recent interest rate activity, according to the latest data from Legal & General’s SmartrFit platform.
Adviser searches on the platform made on behalf of borrowers looking to remortgage after less than six months increased by 31% from April to May.
Activity from overseas buyers also continues to rise, as ‘Visa’ remains the most popular criteria used, holding the top spot for eight months running, and searches on behalf of borrowers with a visa increased by 28%.
May also saw surges of 30% in searches from expats not in the UK, and 13% for searches on behalf of those with a deposit from a foreign source.
Additionally, L&G’s recent search data indicates that buyers are relying on The Bank of Mum and Dad for gifting and financial support, shown by increases of 44% in searches for joint borrower and sole proprietor mortgages and 33% in searches for borrowers using gifted equity. There was also a steep 53% jump in retirement interest-only searches, which suggests retired borrowers could be taking out loans to support family through gifting.
Searches for products that consider EPC ratings jumped by 40% and the data also points to resilience within the buy-to-let sector. May saw an increase of 66% for searches on ‘onward loan to value’ products from buyers with a let-to-buy mortgage, and 18% from limited companies with buy-to-let mortgages.
Furthermore, searches for the terms ‘holiday let’ and ‘Airbnb’ increased by 19% in May.
Jodie White, head of mortgage products and transformation at Legal & General Technology, said: "As people look to reevaluate their finances in response to ongoing cost-of-living pressures, and with an estimated 1.8m fixed rate deals due to end this year according to UK Finance, the remortgaging boom comes as no surprise.
“The resilience of the housing market, as demonstrated by persistent overseas activity and interest within the buy-to-let sector, is also a reassuring reminder that despite the headwinds facing the mortgage market and consumers in general, there is little evidence to suggest any need to panic.
“When supporting borrowers during this time, particularly those that are vulnerable or struggling to keep up with payments, it is crucial that brokers implement new technologies to help manage the current demand for financial guidance. By integrating tools such as CRM software and open data platforms into their advice process, brokers can reduce the time spent on manual tasks, and free up resource to focus on fostering good customer outcomes through high quality advice.”
