Banks say that the number of customers who are refinancing their homes is at an all-time high. Most of these customers want to benefit from two important economic trends. The first reason is that lower interest rates and more competition between banks and other financial institutions are making deals on the market in general better and better. The second reason is that most people's financial situations have changed a lot since they first got a mortgage. As a result, they can now get much better terms and interest rates. For example, most people who take out a 100% mortgage will be able to switch to a 90% or 95% mortgage within two years. These mortgages have much better terms.
In the last couple of years, interest rates have been at levels that have never been seen before. Even though rates have gone up in the past few years, they are still much lower than when many mortgages that are still being paid were first taken out. This means that people who have a fixed-rate mortgage can save money if they pay off their old mortgage and get a new one with today's lower rates. Even if your mortgage rate changes, you may be able to save money because the formulas used to figure out the payable rate may have become more generous in recent years.
This is especially true if you look at how the mortgage market is getting more and more competitive. A lot of competitors from Britain, the US, and Europe have joined the big banks and are all trying to get a piece of the market. They are now giving customers better deals and mortgages with more attractive and flexible terms than any lender was willing to do in the past. With new products, you can take advantage of discount periods, pay more or less than you owe, put your other savings toward your mortgage, or get a mortgage that only pays the interest. Many people who used to have mortgages are now switching to one of these new products.
Also, as time goes on, the value of many borrowers' homes has gone up a lot, and their income has also gone up. This will allow them to get mortgages that they might not have been able to get before. They will be more likely to switch to re-mortgaging if these mortgages have lower rates and better terms and conditions.
