In November there were 34,700 loans for remortgage worth £5.8bn, representing year-on-year increases of 13% in volume and 14% in value.
Remortgage activity remained strong in November with business levels rising year-on-year, data from the Council of Mortgage Lenders shows.
In November there were 34,700 loans for remortgage worth £5.8bn, representing year-on-year increases of 13% in volume and 14% in value.
The volume of loans stayed flat from October to November although they fell by 5% in value.
Jonathan Sealey, chief executive of Hope Capital, said: “The increase in remortgaging in November compared to the same month in 2015 suggests that the low interest rate environment is leading to a focus on this area of the market.
“There is no doubt that the March stampede for buy-to-let last year impacted purchases, with a slowdown in housing transactions in the following months. Brokers will therefore continue to focus on remortgages and product transfers, and this is unlikely to change anytime soon.
“Brexit will undoubtedly continue to impact the market and although lending may fall slightly, I am confident that interest rates will continue to encourage homeowners to remortgage and this will support the overall lending figure throughout 2017.”
Keith Street, vice chairman, group lending at The Northview Group, expected this remortgage surge to continue.
He said: “Remortgaging levels stayed buoyant in November as homeowners took advantage of low rates to refinance and get a better deal on their mortgage.
“We expect this trend to continue into 2017, as borrowers across the UK seek the most attractive rates and consolidate their debts after the festive period.
“The strength of the remortgage market makes it a particularly appealing segment for brokers to focus on.
“However, it’s important that intermediaries don't focus too heavily on the more straightforward remortgage cases at the expense of borrowers with more complex circumstances that might take a bit more time to complete.”
Mark Dyason, director of UK-wide independent mortgage broker, Edinburgh Mortgage Advice, agreed that remortgaging will continue to be a strong area.
He said: "Remortgaging may have dipped compared to October but a large amount of fixed rate loans are coming to an end in the first few months of 2017 and we expect to see considerably more remortgage activity on the back of this.
"What's now very clear is that the absolute best rates have gone. Rates are still incredibly competitive, yes, but if people want to secure the best of what's left, they need to act and soon.
"While we are seeing more remortgaging, there could be a lot more and homeowner apathy could catch many out further down the line.”
First-time buyer activity was on the up with £4.7bn of borrowing, rising by 4% month-on-month and 9% year-on-year.
Landlord borrowing was down 9% year-on-year to £3.2bn in November, though this still represented a 10% rise from October.
John Phillips, group operations director at Just Mortgages and Spicerhaart, said: “The slower growth in landlord’s portfolios comes as no surprise given the new minimum expectations for underwriting standards in buy-to-let mortgages.
“Although the mentality of property investment is still quite embedded, the current weakness in the supply of new homes will continue to affect the market and it will be interesting to see what comes out of the government’s housing white paper later this month.
“Due to the weaker outlook for buy-to-let house purchases, first-time buyers could make up a large portion of net lending going forwards.
“There still appears to be an appetite to buy or remortgage with aspirations for homeownership remaining strong, and I am confident this will help the market to build momentum throughout 2017.”
Harry Landy, managing director of Enterprise Finance, wondered what could jitter the markets in 2017.
He said: “Last year saw plenty of bumps in the road for property investors, with macro-economic events impacting confidence, and 2017 is shaping up to include yet more.
“The first significant jitter of the year is, many predict, likely to be caused by Trump’s inauguration later this week.
“As history has repeatedly taught us, economic volatility often brings opportunities and it’s crucial to recognise that in this climate, a “one size fits all” model simply doesn’t work.
“Financing options need to be tailored, bespoke and cater for the individual borrower’s needs with bridging loans and second charge mortgages prime examples of this.”
