Remortgage activity slowed a bit during the month of February this year, but since then has come storming back and rallied more than modestly during the month of March, according to the latest figures from Connells Survey & Valuation. The sector increased to more than 20% of the valuations market during the month which tops the 15% level it posted during the same month last year. 

The UK housing market experienced some quiet times to start the year, but in the last few weeks it has picked up which means full steam ahead for many builders across the country. Demand for new homes has recently picked up quite a bit and that means more business for home builders who were stuck in neutral for much of January and February. There are also some sizeable civil engineering projects growing legs.

Remortgage activity increased marginally during the month of March compared with February. It accounted for almost 30% of all mortgage lending in February, but that was reduced to only 25% within the month of March. For the month of March, remortgage totaled £5.26 billion. Figures released by LMS speak volumes about how home owners paused and waited for the full impact of Article 50 trigger which has recently occurred. Remortgage remains a strong move for home owners looking to save money on the cost of the monthly mortgage payment.

The latest data on mortgage approvals revealed that lenders approved fewer mortgages in the six months running to March. The Bank of England (BoE) reported only 66,837 approvals for house purchases which was the lowest level since September 2016. This level of mortgage lending is less than what had been forecasted by economists, and it is due noting that the value of mortgage lending fell short of expectations as well.

So far this year remortgage has been on somewhat of a roller coaster trip. January saw remortgage activity strong and a continuation of the strength seen during the month of December of last year, usually a typical month that activity slows. February took a turn south as remortgage activity slowed compared to the month prior. March then saw another turn, as remortgage activity picked up and increased once again. 

UK parents are going to be playing the role of banking lender for a large number of first time home buyers. Without their support those hoping to climb onto the property ladder would be shut out completely. According to research conducted by Legal & General and economics consultancy Cebr, parents are expected to lend more than £6.5 billion to their children to aid them in becoming homeowners.