New research published in recent days suggests that remortgaging activity across the UK is hitting record highs.
According to a study highlighted by propertywire.com this week, remortgaging accounted for a third (33 per cent) of all mortgage lending in April 2017.
Furthermore, separate data published by the Council of Mortgage Lenders (CML) has found that remortgaging hit an eight-year high in the City of London during the same month.
According to the CML’s research, a staggering 92,300 remortgage loans were granted all across the country during the first three months of 2017.
However, initial mortgage lending on house purchases slowed significantly during this period.
This has lead commentators to speculate that the rising costs of moving house are encouraging many households to favour remortgaging and staying put instead – perhaps to fund extensions or home improvements, as opposed to exploring upsizing opportunities.
Commenting on the surge in remortgage activity, Paul Smee, director general of the CML, said: “Attractive mortgage deals aided by low interest rates appear to have sparked a resurgence in activity that has seen consecutive growth year-on-year for every quarter for three years.”
David Hollingworth, of mortgage broker London & Country, added: “It is encouraging to see the penny has dropped and that people are taking advantage of the astonishingly low mortgage rates on offer rather than sitting on their hands.”