Remortgage activity up 25% in November

Posted on Wednesday, December 7 by Joy Tibbs

According to new figures from Connells, remortgage valuation activity increased by 25% in November compared with November 2015 figures and by 4.9% compared with October 2016 figures.

While first-time buyer activity increased by 1.8% on a monthly basis and 13.1% annually, the number of valuations carried out for the buy-to-let sector fell by 6.1% on a monthly basis and 18.5% annually. Home mover valuations fell by 0.8% compared with October 2015 figures.

Total valuation activity was almost flat in November, falling just 0.1% compared with data for October. However, there was a 6.6% increase in overall valuation activity compared with November 2015.

John Bagshaw, corporate services director at Connells Survey & Valuation, said: “There’s no doubt that remortgaging is driving the mortgage market at the moment. While the number of buy-to-let valuations is down almost 19% compared to November last year, remortgaging activity is up 25%. Homeowners want to lock into deals before rates rise.

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

“Fortunately, June through to October were all relatively good months for BTL remortgages with activity rising on a seasonally adjusted basis. The sector was beginning to find its footing again. However Phillip Hammond’s latest proposals regarding lettings fees appear to have unsettled the market again.

“On an annual basis first-time buyers, home movers and those looking to remortgage are pretty active. The annual increase in activity in these sectors has demonstrated the current strength in the market and there has been no drastic change in activity on a monthly basis, as the market remains stable and will be adjusting to changes in the coming months.”

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