Remortgaging activity surges

There was a large increase in remortgaging activity between March 2007 and February 2008.

That is according to the latest figures from Spicerhaart Financial Services, which revealed that remortgaging rose by 43 per cent in this time.

Steve Cox, operations director at the firm, said that the global credit crunch was at least partly responsible for the strong growth in this sector.

"Following the credit crunch we have seen a steady increase in the number of people choosing to remortgage their property, using the cash to improve their existing property or pay off debts," he explained.

"It is also attributable to consumers who are coming to the end of fixed rate mortgages, as they look to secure competitive deals," added Mr Cox.

Further to this, the popularity of long-term fixed-rate mortgages also picked up in the 12 months to February 2008.

According to the data, deals with rates fixed for between seven and 25 years reached their highestlevel ever in the month.

Mr Cox pointed out that borrowers see interest rates as being "relatively low" at 5.25 per cent.

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