New research shows sharp increase in remortgaing activity

An increase in remortgaging is driving the mortgage market, according to new research.

A surge in the number of those looking to remortgage last month saw valuations rise by 4.9 per cent since October, up 24.6 per cent annually.

Connells’ Survey & Valuation study also revealed that overall valuation activity was almost static – down 0.1 per cent on October. However, there was a 6.6 per cent soar in valuations undertaken compared to November last year.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “There’s no doubt that remortgaging is driving the market at the moment.

“While the number of buy-to-let valuations is down almost 19 per cent compared to November last year, remortgaging activity is up 25 per cent. Homeowners want to lock into deals before rates rise.”

Valuations carried out for the buy-to-let sector fell 6.1 per cent month-on-month and 18.5 per cent on a 12-month basis, following the Chancellor’s announcement he would ban letting fees.

John added: “2016 has been something of an annus horribilis for landlords. They have had to contend with the reverberations of the 3 per cent stamp duty surcharge and the removal of the 10 per cent ‘wear and tear’ allowance.

“Fortunately, June through to October were all relatively good months for buy-to-let mortgages with activity rising on a seasonally adjusted basis.

“The sector was beginning to find its footing again. However Philip Hammond’s latest proposals regarding letting fees appear to have unsettled the market again.”