UK home buyers are always faced with challenges as they navigate through the process of purchasing property. Sometimes challenges are easy to overcome, but typically they involve raising large sums of money and working through a disappointing credit rating. When it is over however, the buyer is usually left with a significant amount of personal satisfaction and their own property. First time buyers currently face struggles not seen in years, and house price growth has a lot to do with it.

First time homeowners that purchased their property in the last few years may have missed out on fully understanding the opportunity of getting a remortgage at the end of their current mortgage deal. Thinking that a remortgage is simply a way of cashing out equity and taking on more debt, they are oblivious to the fact that many homeowners not only release cash equity, but lower their debt through savings found in a lower interest rate. 

Recent financial data is pointing to successful days for gross mortgage lending and even better days for remortgage activity. Lending is now expected to fly to its highest level this year since the financial crisis. Primarily driven by the strength within the remortgage sector, mortgage lending overall is expected to excel, according to the Intermediary Mortgage Lenders Association. IMLA is predicting total mortgage lending to hit more than £260bn this year which is an increase of almost 6% in a year on year comparison.

UK housing market house prices have fallen for the second month in a row. Growth in family incomes is still challenging due to the lack of wage progression. During the month of April, average home prices fell by 0.4%. This brings the average price of a home down to £207,699, according to Nationwide. This is the first time in almost five years average home prices decreased in two straight months.

Newsworthy items like Brexit and new tax laws have impacted the UK housing market in significant ways. Some sectors have been greatly affected whilst others not so much. Remortgage activity has been solid since the beginning of Q3 of last year. This trend is expected to continue according to many experts within the housing market. Activity within home estate agencies however remains a question mark and Countrywide has seen some negative effects from the market cooling off.

The latest UK housing market research to surface is leading many experts to see only one short term future. The amount of activity is shrinking and some fear transactions are on a track to continue to slow down. This may be the cause of lenders currently cutting mortgage rates and why remortgage activity is beginning to dry up.