Current Trends in the Remortgage Market

Our Head of Operations, Liz Pearson , discusses current trends in the remortgage market.

The remortgage market is now a considerable part of the overall mortgage market. ONS figures show that 884,899 UK mortgages were ’up for renewal’ in the first three quarters of 2024 and it is predicted that in 2025, ￡58bn of remortgages are expected to be taken out, which is more than a quarter of the overall market.

Traditionally, remortgages are thought of as something that replaces a current mortgage, almost like for like.? Depending on the current economic situation, homeowners often hope that if their equity has increased, they might benefit from a lower rate.

What we are seeing here at Chorley Building Society, is people using the opportunity to remortgage to improve their cost of living and affordability by looking for a lower rate and also considering the term and type of mortgage, and also when possible, releasing funds from their home for something else.

That ‘something else’ can vary from wanting to carry out home improvements, purchase another property for investment purposes, helping a family member onto the property ladder or even consolidate debt.

Here are a couple of recent examples we’ve seen here at Chorley Building Society:

Tara and Oliver had bought their property for 15 years ago when their children were 10 and 4 years old.? Their eldest, Emma was now 25 and desperate to move out and get onto the property ladder herself.? The couple remortgaged their property and released ￡25,000 of capital. They gifted ￡10,000 to Emma for her deposit and used the remainder to purchase a new kitchen – a gift to themselves!

?Andrew had carried out home improvements over the last two years on the house that he purchased.? Although he had savings, he had borrowed some money from family and used two credit cards to pay for some of the materials needed.? He had built up equity in his home over the last two years and remortgaged consolidating his debt of ￡10,000.? This meant he could repay his family and pay off his credit card, reducing his overall monthly outgoings.

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At Chorley Building Society, we take the time to understand every case individually.? We do receive many ‘typical’ remortgage applications, with homeowners simply making sure that they are still on the best mortgage product for them and to continue to reduce their mortgage balance.? However, not everyone is typical and in today’s economic climate we all need to understand the best options for our finances and loans that we may have.

We’d love to talk to you about your needs and how we can use our flexible approach to underwriting to help you and your clients. Contact us by emailing [email protected] or calling 01257 235001.