Remortgages are not as active as many would expect it to be and the reason is that homeowners don’t see any incentive to change to a different mortgage. Rates are low enough that those on a standard variable rate are happy with their situation at least until rates start to increase. Also many are finding it difficult to remortgage due to a lack of equity available in the home.

House prices took a large hit forcing a downward spiral of house values in the economic crash of the housing market leaving many in negative equity and others with thousands of pounds of built equity gone. The housing market is suffering currently with a lack of new first time buyers coming into the ranks of "homeowner". Without those first time buyers to purchase homes on the bottom tier of the housing ladder those wanting to upgrade to a larger home cannot find buyers.

First time buyers are finding it hard to get a mortgage loan due to lending criteria that has tightened up the approvals. The deposits are on the higher end as well and most cannot afford the 25 percent or more deposits that many lenders are requiring. There are some very good packages available but finding a lender with an attractive mortgage package and with criteria that can be met is proving difficult. House hunting has turned into mortgage hunting.

The number of homes on the market is far outweighing the number of purchases. This is lowering the house prices which is good for the buyer. More houses to choose from and lower prices. For those seeking a remortgage, it may be awhile before they see the equity they lost come back into the home, and those in negative equity may have 4 to 5 years to go before prices rise back up to the same average that was present at the peak of the housing boom in 2007.