The UK housing market mortgage and remortgage sectors are quite active, although mortgage lending is still posting monthly under the six month average, according to the latest Bank of England figures. Remortgage figures remain strong as factors affecting the sector remain favourable for house owners. Interest rates are low and that enables lenders to offer low interest rate deals combined with the ability to lock into a fixed deal.

House owners are seeing remortgage as the tool which can help alleviate strain on a family budget, and many households are taking advantage of this. Although lending criteria is less lenient, many house owners are saving massive amounts of money each month and freeing up house equity which can be used for old debt or possibly a home renovation.

For the month of May, remortgages posted almost 43,000 which is an increase from the month prior which saw just slightly more than 40,400 approvals come through.

Andy Knee, chief executive of LMS, commented on the latest data, saying: “The number of remortgage approvals increased for the first time this year in May, despite a slight decline in the number of approvals compared to a year ago.

“Market conditions remain favourable for remortgagors. Mortgage rates remain low, which gives homeowners the option of locking into longer term deals amid an uncertain macroeconomic backdrop.

“LMS data shows that in recent months, homeowners view remortgaging as a viable way of reducing pressure on household budgets.”

Knee added: “In the run-up to the General Election and Brexit negotiations, it is no surprise that homeowners remortgaged in May as a safeguard against potential troubles further down the line.”