Remortgage Transactions Increase in April as Overall Mortgage Lending Slows
The remortgage sector is now underpinning the UK housing market mortgage lending scene, according to the latest data from LMS. It accounted for one third of all mortgage lending during the month of April. As overall mortgage lending has slowed, remortgage lending is now center stage with borrowers and is poised to have more strong months of activity according to many close to the housing market.
Remortgage transactions totaled almost 38,500 during the month of April which is a month on month increase of 8% and an annual increase of 10%. Remortgage as a lending tool is now firmly entrenched in the range of lending products available to borrowers and a strong tool to help home owners save money.
Many house owners are now looking to remortgage as a first option to saving money instead of a second or third option. Interest rates remain low and many lenders are offering deals featuring low administration fees. According to many housing experts, remortgage is considered an excellent resource to potentially save many pounds per month off the cost of the monthly mortgage payment.
Andy Knee of LMS commented on the current housing market climate in regard to remortgage, saying: “The remortgage market had a good month in testing conditions. With total mortgage lending falling, the market share of remortgaging increased to 33% from 28% in March. The number of deals increased annually by 10% and month-on-month by 8%. In the next few months, the General Election and Brexit negotiations will cast a shadow of doubt over the future of the purchase market. Homeowners should seriously consider remortgaging now while rates remain low and in case market conditions worsen significantly.”
Knee added: “The fall in real wages in the first three months of the year has placed a real strain on family finances. Despite this, it is encouraging to see increased numbers of homeowners planning their finances in advance by remortgaging in order to pay off debts, and consulting with brokers in the process, to ensure they get the best possible deal.”