The number of homeowners remortgaging has risen, with many turning to tracker products, new statistics have revealedThe number of homeowners being granted remortgages has risen, new statistics have revealed, despite the overall level of home loan lending plummeting over the last year.
Figures disclosed by the Council of Mortgage Lenders (CML) show that the number of remortgage loans being awarded rose by eight per cent in January this year over the previous month - a trend which could bring about a similar rise in the number of individuals disposing of unwanted investments they took out alongside their initial loan.
What is more, the council also discovered that the volume of tracker deals has increased to 38 per cent of the total market for homeowner loans, suggesting that lenders are increasingly looking to remortgage onto cheaper deals.
Remortgaging has been the catalyst for people looking to dispose of an investment such as an unwanted endowment to realise more cash.
A senior marketing executive for aap noted that the majority of their customers have used them to buy their endowment off them following a remortgage.
If they make an offer, aap, Britain’s biggest endowment buyer will always pay more than the surrender value for an endowment.
According to a prominent financial advice website, opting to change mortgage arrangements now could come with a number of advantages.
"Your mortgage deal may have been the best deal at the time you got it, but lenders often limit their special rates to a fixed-term, leaving you with increasing interest rates and diminishing benefits," wrote a spokesperson for Fool.co.uk.
"Remortgages allow homeowners to access great introductory lending rates again."
Statistics published by CML showed that overall mortgage lending declined by 51 per cent during the last 12 months, with the number of new loans being granted plummeting to less than 9,000.
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