Remortgage activity increased marginally during the month of March compared with February. It accounted for almost 30% of all mortgage lending in February, but that was reduced to only 25% within the month of March. For the month of March, remortgage totaled £5.26 billion. Figures released by LMS speak volumes about how home owners paused and waited for the full impact of Article 50 trigger which has recently occurred. Remortgage remains a strong move for home owners looking to save money on the cost of the monthly mortgage payment.

Andy Knee, chief executive of LMS commented on the latest data following the trigger of Article 50, saying: “Theresa’s May decision to trigger Article 50 stopped a surging remortgage market dead in its tracks. Remortgage lending plateaued at £5.2 billion, and market share dropped to 25%, as homeowners predicted Article 50 would impact on the remortgage market. A general election and Brexit negotiations could spell disaster and coupled with rising interest rates, the remortgage market looks set to experience some tricky months between now and the end of the year.”

Experts are still forecasting remortgage as a strong lending tool for UK house owners looking for relief from surging inflation and stagnant wage growth. Lenders are able to continue to offer low interest rate deals coupled with low administration fees.

Knee added: “On the bright side, the number of people remortgaging rose year-on-year in March – the result of improved affordability. Remortgage repayments accounted for just 17.3% of income in February, down from 18.4% in February 2016. Homeowners sought out cheap prices and long-term security when remortgaging. For those who managed to remortgage in March, this will be of paramount importance in the months to come.”