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The number of homeowners choosing to remortgage with their existing mortgage provider has dropped by 1.7% in the first quarter of 2019 year-on-year, according to data released by UK Finance.
These figures further revealed that 290,000 homeowners chose to remain with their existing provider when switching mortgage products in the first three months of this year.
Although this was a fall compared to the number of homeowners in the same period last year, it resulted in £39.2bn of mortgage debt being refinanced internally, which was an increase of 2.1% year-on-year. This suggests that existing homeowners have increased their mortgage debt.
The good news for those looking to remortgage is that there is currently fierce competition among mortgage providers, with the number of products on offer increasing year-on-year while mortgage rates reduce, despite an increase in the Bank of England base rate last August.
The current top rate in the two-year fixed remortgage chart is being offered by Furness Building Society at 1.39% on a 60% loan-to-value (LTV), which reverts to 5.79% variable after two years and charges fees of £1,250; while those looking at a five-year fixed remortgage term can get a rate of 1.78% on a 60% LTV, which is being offered by Skipton Building Society. This rate reverts to 4.99% variable after 31 July 2024 and charges fees of £1,995.
In addition to low rates, competition between mortgage providers has also seen the incentive packages being offered flourish, with added incentives such as cashback, free valuations and free legal fees increasing year-on-year.
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