Homeowners showed less enthusiasm for remortgaging in April according to the latest figures from UK Finance. In comparison with April 2018, there was a decline of 6.2% in the volume to 9,140. The value of the remortgages declined as well by 8.1% to £3.3 billion. However, homeowners were remortgaging to borrow more compared to the same time period last year.

First time home buyers increased in the mortgage lending market by 11% year on year to a value level of £4.6 billion for April. The number of loans increased to 27,370 which was a 7.8% increase in comparison to April 2018.

Home movers were also showing strong demand for mortgages with an increase of 10.2% to £5.6 billion and the volume of home movers’ mortgages increased by 6.4% to 25,450.

Landlords seeking mortgage lending remained unchanged when compared to April of last year. The levels for mortgaging for new purchases and for remortgaging were £0.7 billion and £2.3 billion respectively.

April was the start of the second quarter of 2019 and the spring season within the housing market. Normally as the season progresses the demand from home buyers increases. Summer is also a strong season for home selling.

Homeowners have been up and down in showing demand for remortgaging. That could be changing soon as there are factors at play that will likely push homeowners to take action, one of which is that without a remortgage they will be put on their lenders’ standard variable rate (SVR). That interest rate is being reported to be at sometimes more than double the level of interest rates many homeowners are paying now that mortgaged or remortgaged two or more years ago.

By slipping onto a SVR and not remortgaging, it could have homeowners paying out a substantial amount of money in their repayments. With a low interest rate remortgage, they could escape the higher payments and secure a low interest rate to give them peace of mind now and into the years ahead.