January sees remortgages hit nine-year high

Recent research has found that remortgages hit a nine-year high during the first month of 2018.

According to UK Finance, January saw 49,800 new homeowner remortgages, up 19.1& on the correspondent month last year. It is also the highest number for a single month since November 2008, where the level hit 51,300.

On an annual basis, the £8.9 billion of remortgaging represented an uplift of 20.3%.

Compared to January 2017, this year saw the number of first-time buyer remortgages grow by 7%, up to 24,500. New lending was up 11.1% year-on-year for the group, hitting £4 billion.

The number of home mover mortgage completions was also up compared to January last year; reaching 25,000 in the first month of 2018, this is an increase of 6.4%. The new lending total of £5.4 billion was 10.2% more during January than the correspondent month last year.

Commenting on the data was Jackie Bennett. The Director of Mortgages at UK Finance stated: “Remortgaging in January reached a nine-year high, as a number of previous fixed rate mortgages came to an end while borrowers locked into attractive deals amid expectations of further interest rate rises.

“While an increase in remortgaging is expected in the New Year as people put their household finances in order, this strong growth is above the seasonal fluctuations we tend to see at this time of year.

“We saw the usual dip in both first-time buyers and home-movers post the December festive period, but mortgage lending in both segments increased compared to the same period in 2017.

“However, growth in the buy-to-let market remains subdued, reflecting the ongoing impact of recent tax and regulatory changes.”

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