Remortgage is not the only type of mortgage lending which is powering the market through the first and second quarters of this year. First time buyers have also been on a tear through the first few months of the year in what many are describing as a race to obtain lending prior to another hike in interest rates. Housing experts still see great likelihood that another interest rate increase will take place in the beginning weeks of next month during the May meeting of the Bank of England Monetary Policy Committee.

The current rate of 0.5% is expected by many to see an increase next month. Rates from many lenders are already starting to climb in anticipation of the Bank’s vote to increase rates. Many current house owners seeking remortgage as well as first time property buyers are acting quickly to obtain lending before rates go north.

The month of January was especially active for home owners and remortgages. An all-time high of 50,000 remortgage approvals transactions took place during the first month of the year as first timers also brought in the New Year with a new property purchase. The month of February saw less remortgage activity as 35,400 approvals were granted. This is a year on year increase of more than 11% from the same month of 2017.

Fixed rate deals are still in high demand leading up to a potential increase in rates next month. Fixed mortgage lending products offer the borrower protection in the future from other interest rate increases.

The number of first time property buyers totaled more than 25,000 which is an increase of 2.4% compared with the same time last year.