UK mortgage activity has shifted from remortgage to purchase

UK Mortgage activity has shifted away from remortgaging to home purchases thanks to the stamp duty holiday, research from Trussle found.

More homeowners are moving to a new home (56%) than remortgaging (44%), compared to this time last year, where the majority were prioritising remortgaging (63%).

Miles Robinson, head of mortgages at Trussle, said:

“After an uncertain year, it’s encouraging to see house prices rising and the property market moving, with a sustained interest for house moves.

“While many homeowners contemplate buying a new home, it’s important to keep on top of your current mortgage and consider remortgage when the time is right.

“Every year, thousands of homeowners unknowingly move onto a high standard variable rate (SVR) when their mortgage deal ends and their monthly payments can increase considerably.

“Homeowners can save £344 on average per month by remortgaging, which is a significant sum.

“In these unprecedented times, we’d encourage those who are concerned about their finances to keep an eye on their mortgage. It’s worth using a remortgage calculator to see if switching to a better deal could save money.”

Homeowner appetite for remortgaging started off the year strong, with applications in January up 196% month-on-month.

As the UK entered lockdown remortgage applications jumped 54% during March.

Then the stamp duty holiday saw mortgage applications from next time buyers surge by over 73% in June – while this only increased after the stamp duty holiday was launched in July.

You can try Trussle’s remortgage calculator here.

Kindly shared by Property Wire

Main article photo courtesy of Pixabay