Percentage Of Valuations For Remortgages Increases
You may be interested to read that, according to Connells Survey and Valuation, in August of this year the percentage of remortgage valuations increased when compared with the same month last year. Apparently, in August 2017, 37% of valuations were for remortgage business with this being a rise of 3% in comparison to August 2016.
The above figures include remortgage business for both residential properties and buy to let properties.
One of the reasons why there has been such a rise could be due to the number of attractive offers available from lenders in terms of interest rate packages. Another reason could be that there is some concern that interest rates may rise at some point in the future and some borrowers want to lock into fixed interest rates for a number of years.
Interestingly, there has been a drop in the percentage of people requesting a valuation with a view to placing their property on the market for sale over the same period. In August of this year 21% of valuations were for people looking to sell their homes yet in August 2016 the figure was 25% – a drop of 4% – that seems to be a significant reduction.
With the amount that people are borrowing these days to purchase a home, a small increase in interest rates could make quite a difference to their monthly repayments on their residential mortgage obviously depending upon the package that they are on i.e. the standard variable interest rate. In that respect, there will no doubt be some borrowers who have or are shortly to come off a fixed rate mortgage and revert to a standard variable rate so those people may be affected if the Bank of England base rate increases as that may in turn result in lenders deciding to increase their residential mortgage interest rates. We will try to keep you updated periodically.