Entering the month of January for many close to the UK housing market meant experiencing a market full of uncertainty and possibly falling short on many economic forecasts. That ended up being the case with many sectors within the housing market, but one continued its strong run – remortgage. Figures from the CML indicate the month of January was especially strong for remortgage activity. Month on month compared with December, January posted an increase of 54% in remortgage value and 46% in volume.

Year on year comparison to January 2016 was not as extreme, but still quite significant. Remortgage lending increased this year 22% in value and 21% in volume.

Lenders remain quite competitive, offering deals which are suitable for many home owner financial situations. House owners are finding savings in a new mortgage product and use for valuable home equity which can become unlocked when obtaining a remortgage. Uses for home equity cash include paying off old debt, taking a much-needed holiday, and completing a home renovation which is long overdue.

Paul Smee, director general of the CML, commented on activity within the first month of the year, saying: "January gives the impression of a flattish market overall, albeit one with a resurgent remortgage sector. We expect a seasonal dip in activity in the winter months and this appears to be the case in January. However, the lull in moving activity appears stubbornly persistent, and we have commissioned research on the reasons why the number of transactions seems in secular decline.”

Smee added: "Buy-to-let house purchase activity continues to be weak, despite strong buy-to-let remortgage levels. This will likely remain so going forward as lenders tighten affordability criteria ahead of the PRA mandated stress tests, and the introduction of tax changes in April."