There was a resurgence in remortgaging activity in November as the rest of the UK housing market cooled, according to research from Connells Survey and Valuation.
Remortgaging was the most robust sector of the housing market, performing well both on a monthly and annual basis, while gross mortgage lending fell 9 per cent from October to November and was steady year-on-year, the firm added.
The total number of remortgaging valuations conducted in November increased by 10 per cent compared to October, and by 3 per cent compared to November last year.
Data published by the Council of Mortgage Lenders revealed that gross mortgage lending reached £16.9bn in November, matching the same amount recorded a year ago.
John Bagshaw, corporate services director of Connells Survey and Valuation, stated that lenders continue to offer even more competitive mortgage rates, while many households are using this opportunity to remortgage and reduce their monthly payments.
“November saw a marked shift in sentiment with more lenders and borrowers opting for a tone of caution. Regulatory changes continue to impact other sectors of the market, especially first time buyers with restrictions on lending.
“On the other hand, the low base rate has powered demand for remortgaging, and to a lesser extent, buy-to-let.”
The total number of valuations for all purposes fell 5 per cent on an annual basis, although this was an improvement from the steeper drop of 10 per cent over the twelve months to October 2014.
Mr Bagshaw explained that the annual figure compares favourably with historic data, exceeding the number of valuations recorded in November 2012, 2011 and 2010.
“With so many variables in play it remains to be seen whether this points to a cooling market in 2015 or if this is part of the usual festive seasonal trend.”
peter.walker@ft.com
