A spike in remortgage activity was reported in May as borrowers looked to beat further rate rises, new research from Legal & General Mortgage Club’s SmartrCriteria tool shows. 

Searches for homeowners wanting to remortgage after just six months rose by 20%.

L&G suggests concerns about rising interest rates could be prompting borrowers to obtain fixed deals over tracker mortgages, or lock into low rates that are still available on the market. 

As consumers continue to navigate the current cost-of-living crisis, searches on behalf of those with missed mortgage payments and unsecured arrears grew by 20% and 10% respectively. 

The data also suggests that more borrowers are seeking financial support from loved ones to progress with their purchase plans. 

Searches for joint borrower sole proprietor mortgages increased by 27% in May while searches for products that accept shared equity climbed by 40%. 

Meanwhile, the data showed that searches on behalf of first-time buyers rose by 16% last month.

L&G says many of these borrowers will be looking for higher loan-to-value (LTV) products and searches for interest-only mortgages increased by 80% over the month. 

Even after the Help to Buy (HTB) deadline for the final applications was brought forward by two months, searches for HTB mortgages went up by 47% in May. 

The data also suggests that international demand remains strong.

Searches for borrowers with visas remained the top searched metric last month, as it was in April, while searches for expatriates not in the UK also climbed by 23%. 

Commenting on the latest figures, L&G Mortgage Club head of broker and propositions Clare Beardmore says: “Following a further increase in the Bank of England base rate in June, it is perhaps unsurprising that remortgage activity is on the rise, as borrowers look to lock in competitive rates while they still can.”

“While we have seen a lot of re-pricing from lenders, there is still a very wide range of competitively priced products available, both for homeowners looking to remortgage and potential borrowers looking to step onto the property ladder,” Beardmore adds.