Remortgage deals decline in demand for a second month

Remortgage deals have declined in demand for a second month in a row, according to recent data from the Bank of England for the month of October 2011.

The data shows that the number of remortgages went down from 34,004 in September 2011 to 31,154 in October 2011 which was a reduction of around 3,000. Before the October 2011 figures were announced, the September remortgage figures were the lowest since June 2011.

Remortgaging deals have not been in as high a demand from home-owners due to the slight increase in the remortgage rates offered by lenders. Lenders have become more cautious in their outlook on future borrowing and have pulled their cheapest remortgage rates.

A remortgage can mean a lower interest rate which will save a home-owner money by lowering monthly payments. It offers the chance to change to a different loan product and gives a home-owner the ability to turn equity into cash. This cash sum can then be used to pay debt, make home improvements, make investments, or pay for the purchase of a high cost item.

Without better incentives to remortgage, home-owners are content to stay on their current deals or to wait it out on their lender’s variable rate. For some a remortgage can mean huge cost saving opportunities. Remortgages are still very affordable and home-owners should be giving them more serious consideration while they remain cheap.

According to Barclays research, 58% of home-owners have never changed their mortgage and therefore, a significant number of home-owners, are missing out on the benefits of remortgaging deals.