Forecasts of UK housing market home mortgage lending span a wide range for the first part of the year, and this is proving to be a safe bet. Mortgage lending within the capital city of London is down for the first quarter of the year, but remortgage is flying high. Low supply and few affordable homes are available which is adding to the mix of the wide range of data dripping out of the housing market. With the selling season upon us, many experts don’t quite know what to expect going forward.

Compared with the same time period last year, mortgage lending in London was down almost 20% in the first quarter of this year. This is the second quarterly drop in a row.

Council of Mortgage Lenders figures indicate first time buyer lending slowed during the first quarter, but remortgage activity was quite high. Remortgage figures are as high as they have ever been during an eight year period. This is telling and represents more than just success for the remortgage market. It says remortgage is now being considered more than ever before.

Remortgage is now one of the leading mortgage lending tools being considered by home owners looking to save money. Due to a decrease in interest rates last year, remortgage is looked at as a weapon against high monthly mortgage payments. Not only are homeowners saving money through remortgage, they are also accessing home equity and using the cash as a fine way to pay off old debt or start a home renovation.

Paul Smee of the Council of Mortgage Lenders commented on the latest data, saying: “Home buyer activity in London has fallen for the second quarter in a row. A traditional seasonal dip in activity in the winter months is expected, but it has been more pronounced in London compared to the UK overall.”

Smee added: “By contrast, remortgage activity was at an eight year high in London. Attractive mortgage deals aided by low interest rates appear to have sparked a resurgence in activity that has seen consecutive growth year on year every quarter for three year”