Remortgage activity within the UK housing market has been increasing steadily over the past twelve to eighteen months. Home owner remortgage has become extremely popular as this group has been increasing demand for fixed rate products providing security against increases in interest rates in the future. Somewhat of a surprise to housing experts has been the increase which took place during the first quarter of this year in the buy to let sector. More than 50% of buy to let mortgage lending in Q1 was for landlords.

Two years ago at the same time of the year, only 29% of landlords accounted for remortgage lending of buy to let. The year 2015 was also the time in which a large net of new taxes were announced and initiated. This had noticeable effect on the amount of remortgage activity that year within the sector.

Remortgage activity this year has been highlighted by the amount of residential remortgage approvals which were transacted in the month of January. During the first month, 50,000 remortgages were obtained which is an eight year high.

Low interest rates and other supporting factors have contributed to an increase in remortgage during the past two years. Home owners are saving money on the cost of their monthly mortgage payments and gaining access to valuable funds in the process.

Remortgage activity is expected to continue this year at an elevated demand level. Interest rates were not hiked in the month of May as planned. The Bank of England has speculated at an increase in rates later in the year 2018, but with little confidence. Housing experts see this period as possibly one of the best periods in which to remortgage.