24% remortgage to cover debts or save on costs: study

24% remortgage to cover debts or save on costs: study

Nearly a quarter of homeowners remortgaging a property increased their loan to cover other costs in December, research from LMS has found.

Research among 681 people by property firm LMS in December found 24 per cent of those remortgaging had boosted their loan by up to £1,000 for other debts or spending.

But others were able to make savings by remortgaging, with 37 per cent of those who did so saying it helped them save up to £500.

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Another 3 per cent said they were able to save more than £500 because they had remortgaged an existing property.

Andy Knee, chief executive of LMS, said: “Borrowers should not be complacent, as competitive rates will not be around forever.”

The figures also showed that 26 per cent of respondents thought interest rates would go up soon, which could lie behind their decision to remortgage last December.

Adviser view

Jason Hegarty, adviser for Suffolk-based Keystone IMC, said: “If I were going to give blanket advice to somebody, it would be to consider remortgaging, but be mindful of the lenders with whom people are remortgaging, and take into account service levels and mortgage terms and conditions.”