Remortgage lending increased in January from December by 15% according to data from the Council of Mortgage Lenders (CML). Buy to let lending increased by 6%, while first time buyer lending declined by 26%, and homemovers volume of lending fell by 24%. The level of lending to first time buyers is expected to increase due to many factors set to bring interest back to the housing market.

Government programs in place to assist first time buyers with starter homes, low interest rates, and a revised stamp duty are all due to attract hopeful home buyers back to the market.

Paul Smee, director general of the CML, remarked, “The traditional beginning of year seasonal lull in lending is slightly more prominent in house purchase lending than in previous years, especially in comparison to the particularly strong levels at the start of 2014.

“Affordability constraints remain a factor for would-be borrowers, but we are still projecting lending to pick up over the next few months.

“Increases month-on-month in remortgaging, both for home owners and in the buy-to-let market, are welcome given the recent static nature of remortgage activity. Interest rates are looking unlikely to go up in the very near future and the greater availability of good mortgage rates has probably motivated people to look at a change.”

January volume for loans included 25,600 for remortgaging homeowners, 22,400 to homemovers, 19,000 to first time buyers, and 18,200 to landlords.

With equity levels set to show gain again this year for homeowners, remortgaging is expected to increase, especially as lenders begin to pull their cheapest remortgage interest rates from the current offers.