Amidst all the chaos surrounding the economy right now, you would be forgiven for thinking that it might be a poor time to remortgage. To the surprise of many, remortgage activity is actually at its highest since 2008 in the UK. A recent report from UK Finance has revealed that homeowner remortgaging activity in October increased 23.2% on an annual basis with 50,500 new transactions recorded with a total value of £9.2 billion so why exactly is this?
Some analysis of the data within the report revealed a number of key factors. An astonishing 400,700 remortgage have been completed form the start of 2018 up until the end of October which is the most active year for a decade when 772,000 remortgages were completed in 2008 so the idea that the uncertainty surrounding Brexit has affected the market certainly does not stand up to scrutiny so far.
Additionally, the data in the report also reveals that first-time buyer mortgages and new homemover lending both increased in both value and numbers this month as well. In total, 32,900 first-time buyers completed mortgages which is an increase of 8.2% on the year at a total value of £5.5 billion. Likewise, homemover activity represented 33,400 transactions in October which was 4% more than last year with a value of £7.4 billion.
While it is true that buy to let purchases have fallen by 9%, the same cannot be said for buy to let remortgage activity. In fact, there has been 5.4% growth in terms of remortgage numbers with a total value of £2.5 billion. The idea that the buy to let market is becoming less competitive simply isn’t true with many mainstream lenders having reduced their rates in the last 6 weeks alone.
Of course, it remains to be seen how the political turmoil will affect the market in the medium term but it cannot be denied that the numbers and data above will comfort a great number of our readers. The signs certainly are there that activity will continue to grow in a subdued manner in the new year. To put it simply now is as good a time as any to remortgage in both the residential and buy to let sectors.
We revealed back in October that over 70% of the United Kingdom are now choosing to approach a mortgage broker rather than go to a lender direct and we would argue that the figures above add weight to the argument that this is a shrewd move.
With remortgage activity so high, our whole of the market approach allows us to find the best deal in the marketplace for our clients even in times of uncertainty. If you are considering a switch, then why not get in touch and we can work towards the most effective solution together!
Call us on 0345 873 1234 or email info@specialistmortgages.uk.com and we’ll get back to you!