First time buyer activity in the month of April took off, totaling more than 26,500. This is an increase of 3.5% compared with the same month a year earlier. Increases in wage growth as well as government assisted programmes are points of possible increase, according to the latest housing data. UK Finance figures also indicate remortgage had an incredibly strong month in April with fixed rate deals leading in popularity. Talk of a possible interest rate increase in the month of August appears to have prompted many to act now instead of waiting to see if this hike is successful.

Remortgage activity as well as first time buyer approvals surged in April as many attractive deals were taken advantage of. In recent months, an increase in wage growth has been mentioned by many within housing, but many still point to the historic low interest rates driving people to act.

The Monetary Policy Committee meeting in May was expected to result in an increase in interest rates. This did not occur. Many people seeking a new deal whether it is remortgage or original purchase had moved forward in the month prior resulting in a surge of activity.

Currently, the market is sitting in the same position as earlier this year. A potential interest rate increase looms as some believe an increase will take place in the month of August. The Bank of England has hinted at the possibility.

Jackie Bennett, director of mortgages with UK Finance, commented on the latest data, saying: "Remortgaging activity bounced back to strong levels in April, as both homeowners and landlords put their house in order by locking into attractive fixed-rate deals ahead of an anticipated interest rate rise.”

Bennett added: “This spike in remortgaging was also driven by a large number of short-term mortgage deal rates coming to an end, combined with increased efforts by lenders to contact their customers before their deal rate expires."