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LMS, a conveyancing service provider, has found that the proportion of borrowers re-mortgaging following relationship break-down has increased by 5% in May 2018.
The above statistics include borrowers who need to raise funds to cover divorce settlements, as well as people who are trying to fund the removal of their ex-partner from the mortgage.
Nick Chadbourne, chief executive of LMS, commented: “As divorce becomes simpler through innovations such as the government’s new online divorce system, so too is re-mortgaging. This may well be contributing to the use of re-mortgaging as a vehicle to raise fund for divorce settlements.”
The most popular driver for re-mortgage continues to be when individuals are reaching the end of a fixed rate deal, and they are seeking to protect themselves from a potential base rate increase later in the year. The survey finds 63% of borrowers re-mortgage for this reason.
In addition to break-downs in relationships, the survey found the number of borrowers who are re-mortgaging to pay off debts generally is increasing. LMS found that the amount of borrowers looking to re-mortgage to pay off debts has risen from 13% in April to 16% in May.
If you would like to speak to a member of the Residential Property team about re-mortgaging, for whatever reason, please call 0161 941 4000 and speak to one of our team.