Remortgaging driving mortgage market, research shows

Wednesday 7th December 2016

The latest research from Connells Survey & Valuation has revealed that remortgaging activity is the main driver in the mortgage market, outperforming all other areas. 
According to their findings, November saw a jump in activity of the number of people looking to remortgage, with valuations increasing by 4.9% compared to October and up by 24.6% on an annual basis. 
When seasonally adjusted, overall valuation activity was pretty much static in November – the number of valuations fell very slightly, down 0.1% on October. Nonetheless, there was a 6.6% rise in the number of valuations undertaken when compared to November 2015. 
“There’s no doubt that remortgaging is driving the mortgage market at the moment,” John Bagshaw, corporate services director of Connells Survey & Valuation, commented. 
“While the number of buy-to-let valuations is down almost 19% compared to November last year, remortgaging activity is up twenty five per cent. Homeowners want to lock into deals before rates rise.”
Following the Chancellor's recent announcement that letting fees to tenants would be banned, the number of valuations carried out for the buy-to-let sector dropped by 6.1% on a month-on-month basis and 18.5% on an annual basis. 
“2016 has been something of an annus horribilis for landlords,” Bagshaw continued. “They have had to contend with the reverberations of the 3% stamp duty surcharge and the removal of 10% 'wear and tear' allowance.”  
He added: “Fortunately, June through to October were all relatively good months for BTL remortgages with activity rising on a seasonally adjusted basis. However, Phillip Hammond’s latest proposals regarding lettings fees appear to have unsettled the market again.”

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