Remortgaging accounted for a third of all mortgage lending during April as it continued to prop up a slowing housing market.
The number of remortgage transactions made in April rose by 8 per cent to 38,475, according to data from conveyancing service provider LMS.
Activity was up 2 per cent by value to £6.1bn, the figures show.
The Council of Mortgage Lenders has revealed total mortgage lending fell by 11 per cent to £18.4bn in April, meaning remortgaging’s market share grew to account for 33 per cent of total lending for the month.
Intermediary enquiries rose as remortgagors chased the best possible deals, with the number choosing to consult a broker rising from around two-thirds (63 per cent) to almost three-quarters (72 per cent).
Under a fifth (15 per cent) of those who remortgaged did so to unlock equity to pay off debts - but this was a significant jump from the one in ten (11 per cent) who did the same in March.
More than a third (34 per cent) fixed for five years, in contrast to one in twelve (8 per cent) who previously had a fixed five-year deal, continuing a three-month trend of remortgagors seeking greater security by opting for longer-term deals.
LMS chief executive Andy Knee said homeowners should “seriously consider” remortgaging now, as the general election and Brexit could lead market conditions to deteriorate.
He 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.”
Matthew Bird, investment and mortgage adviser at Newport-based Seer Green, commented: “There have been more remortgage cases going through; it has all been pretty constant. There have been maybe a few more first-time buyers.
“If your fixed-rate or tracker is due up, it is always worth looking around at the whole market rather than just fixing again with your existing lender, because the chances are you will be able to save money.”
simon.allin@ft.com
