According to statistics from Accord, a member of the Yorkshire Building Society Group, re-mortgages have recently doubled in comparison to last year.

The increased activity in re-mortgaging is believed to stem from the threat of a rise in the Bank of England base rate. The number of applications for re-mortgages rose by 127 per cent in July and in August, the number increased by 87 per cent. Although very few experts in the mortgage industry think that the interest rates will rise this year, most believe it is possible next year, especially as the Federal Reserve in America threatening to raise interest rates there.

The sales manager from Accord, David Robinson, stated that consumers were doing the right thing by securing a cheap deal. He also said that the Bank of England’s Carney had admitted that the timing of the interest rate increase couldn’t be predicted. He added:

“That’s why brokers need to help their clients to be financially savvy and look at whether they would be better off locking into a fixed rate now whilst market conditions are still very favourable to borrowers.”

The associate director of communications at London & Country Mortgages, David Hollingworth, said that some people may have become complacent about the incredibly low mortgage rates. Securing a low fixed rate mortgage product may help borrowers to keep monthly payments at an affordable level. A qualified mortgage adviser who has taken a CeMAP training course will be able to provide advice.

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