Data on April’s remortgage activity from the Bank of England supports the activity reported by both the Council of Mortgage Lenders and the British Bankers’ Association.  All showed a decline in demand in the mortgage market.  Remortgages had been popular as homeowners sought to avoid the forecasted interest rate hike by the Bank.  During the month of April there should have been high demand as forecasts were heavily calling for an interest rate increase to occur in May.  The numerous Bank holidays and Royal Wedding likely proved to be distractions for homeowners and many postponed any lending business.  

The Bank of England reported a drop in both remortgaging and new purchase mortgaging.  Mortgage approvals for house purchases dropped to 45,166 which is the lowest level since December which experienced bad winter weather and kept buyers away.  This level is also the second lowest level since March 2009.  Remortgages fell by 10 per cent to a level experienced last summer in July.  The number of remortgages were 28,091 and this was with the looming forecast of an interest rate increase in the next month.  While numbers were expected to be low due to the five fewer business days in the month, a 10 per cent decrease may be revealing more than just a diversion from holiday fun in the month of April.

Remortgages may take a back seat even without holidays in the coming months.  Forecasts are calling for a rate increase to occur no sooner than August and for homeowners that would remortgage to avoid a rate hike they may have months to wait.  However, the decline in demand for remortgages is expected to lead to more competitive deals from lenders making this a prime time for the homeowners to seek a good rate.