During the first quarter of the year the remortgage sector was on fire and nothing was cooling it off. Home owners across the country were taking advantage of the major competition lenders were engaged in trying to outsmart each other. Interest rates were extremely low and going lower. Administration costs were almost non-existent and demand for remortgage products was keen. This level of activity was surprising to many close to the market.

Fast forward to the latest data from the CML and the landscape looks slightly different. Demand for housing remains at a high level, but the classic mortgage tool known as a remortgage is running into a challenging time. From April to May, a dip in remortgage activity of 15% was posted, according to the latest Council of Mortgage Lenders data.

Activity is still 30% higher during the month of May compared to the same time last year.

Home owners are still finding the advantages of a remortgage to be incomparable to most other options available today. Obtaining a lower interest rate protects home owners to the possibility of the interest rates increasing in the future. This feature alone can be worth thousands of pounds to those who currently own their home.

Paul Smee, director of the CML, commented on the current climate which exists in the market, saying: “There was a sense of the market regaining some equilibrium in May, following the stamp duty driven spike in March and the subsequent dip in April. For the second month running, first-time buyers borrowed more than home movers, the first time in 20 years that this has been the case. Buy-to-let continues at lower levels as expected, after the change to stamp duty.

“Brexit, and its likely effect on the market, is a question to which the answer will not immediately be forthcoming. Lenders will continue to be open for business as usual, but lending volumes may be affected by uncertain consumer sentiment.”