Remortgaging activity in the UK has skyrocketed over the past year, a new survey has revealed.
According to the latest research from Connells Survey & Valuation, the total number of remortgage valuations carried out in October was 53% higher than the same period last year.
This comes despite a seasonal fall, which saw remortgaging in October drop 21% on September.
Both the buy-to-let and first-time buyer sectors recorded strong year-on-year activity in October.
Valuations carried out for buy-to-let investors grew by 25% in the year to October, while first-time buyer valuations increased by 20% over the same period.
However, both sectors also experienced a slight monthly downturn, with October activity in the buy-to-let sector down by 9% on September. Meanwhile, first-time buyer activity saw a 17% dip over the same period.
While home mover valuation activity fell 27% between September and October, growth on a yearly basis was solid at 14%.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Those looking for cheaper rates have likely been tempted to remortgage to take advantage of the rock-bottom interest rates while they last. Many are also taking this opportunity to remortgage in order to release equity and so upgrade their current property.
“The buy-to-let sector continues to thrive, albeit it at a steadier pace than in previous months. The fundamentals of its profitability have remained intact. Demand for housing still exceeds supply and very low mortgage rates remain in abundance. Moreover, the Bank of England announced recently that any rate rise is off the cards for the immediate future, meaning the field is still open for many more investors to acquire a portfolio and become a new landlord.”
