Moneyfacts.co.uk data can reveal that not only are remortgagors reaping the benefits of more products on the market, but they’re also profiting from significantly lower rates.

With remortgage activity surging to its highest level in four-years*, it looks as though there has been no better time to take advantage of the great deals on offer. The table below highlights how the number of products available to remortgage customers on the market has increased while the rates charged have simultaneously fallen.

Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said:

“It seems that now is the perfect time to remortgage; growing product numbers and falling rates have created a perfect storm in the remortgage market, and borrowers are rushing to take advantage. Some rates have witnessed particularly dramatic reductions since the beginning of this year: the average two-year fixed mortgage for remortgage customers has fallen by an astonishing 0.39% in just six months, for example.

“With the average Standard Variable Rate (SVR) standing at 4.82% today, it’s unsurprising that more and more consumers are remortgaging to a better deal: by switching to the average two-year fixed rate mortgage, customers can potentially save £2,196.00** in just one year.

“Many deals are also now offering the option to make overpayments, which if taken advantage of, can benefit remortgage customers even more. Wise remortgagors could use the money saved from changing deals to overpay their mortgage, thereby reducing the length of their mortgage term.

“However, with the Mortgage Market Review now firmly entrenched in bank policy, some remortgage customers will be shocked by the changes in the mortgage process. But as long as remortgagors get their finances in order, there is nothing to worry about.

“If you are considering remortgaging to a low-cost mortgage, act now to avoid disappointment. These attractive deals will not be around forever.”

* Source: British Bankers Association.

** Based £150,000 mortgage over a 25-year term on a repayment only basis.

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Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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