It is not the easiest time for those who wish to remortgage their home with a different lender, as data¹ shows that remortgage approvals have hit the lowest level since 1999.
In Q1 of this year, remortgages totalled £17.5bn, which is £10bn less than in 2022². However, it is expected that more than 800,000 mortgages with fixed terms below 2% will have ended in 2023³. With lenders being more stringent in their assessments, many may have been forced to renew with their current lender.
This data is another sign that the property market has been significantly impacted by high interest rates and the cost of living crisis but, with Bank Rate held again in November, many hope that the new year will bring relief.
You may have to pay and early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up with your mortgage repayments.
¹BoE, 2023, ²FCA, 2023, ³ONS, 2023