Accord saw a 60 per cent climb in remortgage applications over the summer months ahead of the biggest maturity period in five years. The intermed
Accord saw a 60 per cent climb in remortgage applications over the summer months ahead of the biggest maturity period in five years.
The intermediary-only arm of the Yorkshire Building Society said the biggest spike came in August, which saw a 68 per cent rise on the same month in 2016.
Data from CACI shows more than £35bn-worth of mortgages are due to mature in September and October, 70 per cent of which came from intermediary business.
News of the spike in business comes after conveyancing service provider LMS revealed there had been a 12 per cent surge in remortgage transaction volumes between June and July.
And with many expecting a rise in interest rates in the near future, the proportion of remortgagors opting for a five-year fix surged to a record high.
David Robinson, national intermediary sales manager at Accord, said: “It’s positive that borrowers are taking action before their deal comes to an end. Many could see a significant reduction in their monthly repayments thanks to a favourable shift in house prices and interest rates.
“The surge is also great news for intermediaries who have an important role to play advising their clients on the best remortgage deal for them.
“Our current mortgage range offers a choice of competitive remortgage options, which include both free legal assistance or up to £500 cashback features, tailored to meet a range of borrowing needs.”
Mike Perndergast, an adviser at Cheshire-based Zen Financial Services, said it was a good time for people to be thinking about remortgaging.
He said: “It is quite competitive at the moment, and there are quite a few fee-free deals as well. Quite a few of the best rates come without a fee and free legals. Accord had some reasonable rates, which is probably why they had an increase in business.”