As the summer holidays wind down and children return back to school, now is typically the time homeowners reassess their finances. High street lenders are engaged in a price war, so many homeowners are opting to remortgage, says Tim Woods, Partner at Knight Frank Finance.

Activity in the UK mortgage market remains robust following a record-breaking period for the housing market.

Banks issued more than 75,000 mortgages in July, about 15% above the long-run average. Meanwhile, house prices climbed an eye-popping 11% in the year to August according to Nationwide.

The activity comes at the height of a mortgage war, with lenders battling for market share – competition that has seen most of the big banks announcing cuts to their range, resulting in some of the lowest rates seen for decades. And, as the stamp duty-driven activity tapers off, banks are now directing their low-rate lending at remortgaging.

“As children head back to school, parents have an opportunity to reflect a little on where they are financially and consider whether now is the right time to remortgage, particularly at a time when rates are at historic lows,” says Tim Woods, one of our Partners. “At the same time, banks are also eager to retain their customers as a large number of homeowners come to the end of their existing two- and five-year fixed mortgages over the next three months and look to renew.”

There have been few better times to borrow. Earlier this month, Halifax launched a two-year fixed deal at a rate of 0.83%, which at the time was the cheapest deal among the major lenders. There are signs, however, that mortgage costs are approaching the point where they can go no lower, with banks now seeking to match the best deals available rather than undercutting each other.

“The margin between the top 10 lenders is now non-existent – we’re talking 0.002 difference between the top five two-year fixed rates, which would suggest we’re getting close to – or are already at – the bottom,” Tim adds. “This means for homeowners, now couldn’t be a better time to consider a remortgage.”

If you are looking to remortgage and would like to discuss the options available to you, please do get in touch. We know all the major lenders in the marketplace and can help find the most cost-effective and suitable mortgage for you.