It is also 11% lower than the 46% who consulted a broker at the start of the year. This leads to concerns that borrowers may be missing out on competitive rates or the most suitable products for their circumstances as intermediaries can access products not available on the high street.
Homeowners are more confident in their own ability to make a decision about remortgaging without consulting a broker likely, in part, to low expectations of a base rate rise. Expectations of a rate rise among remortgagors has fallen four percentage points from 16% in February to 12% in March, the lowest recorded by LMS.
Despite the competitive rates currently available, the number who remortgaged to lower their mortgage rate in March was just 57%, a drop of 11 percentage points year-on-year.
Motivations for remortgaging
The percentage of individuals who remortgaged because they came to the end of their current deal fell to 45%, a five percentage point difference from February’s findings (50%).
Nearly one in three (28%) remortgagors opted to increase the size of their loan, with more than one in five (22%) increasing the size of their loan by more than £10,000.
The research shows that the number of people remortgaging who did so to help their children buy a home is now at 3%, increasing one percentage point from February (2%). However, there was a month-on-month fall in the number of people remortgaging to pay off other debts in March (8% vs 7%) as well as in the number of people opting to remortgage for home improvements (20% vs 18%).
Andy Knee, Chief Executive of LMS, comments: “A persistently low base rate and a host of competitive mortgages on offer may be leading many remortgagors to miss out on the best available rates through apathy. After seven years of a historic low rate, there is no sign of an increase in sight, reducing the motivation of homeowners to remortgage or consider their options.
Concerning too, is the fall in the number of remortgagors seeking independent financial advice when remortgaging. While homeowners may feel confident in their ability to remortgage, shopping around is the best way to ensure you take advantage of the most competitive offers that may enable savings of hundreds of pounds each month, and advice can help to navigate the complexities of the mortgage market to find the most suitable product for your circumstances.”
