Remortgage demand is growing as homeowners are seeking to secure savings with low interest rate deals. Data released from the Council of Mortgage Lenders (CML) has shown that all regions in the UK experienced a growth in remortgage lending in the first quarter of the year. The data also revealed a decline in lending to homemovers and first time buyers.

Remortgage lending increased by 10% in Greater London, 4% in Scotland and remained unchanged in Northern Ireland and Wales. Volume levels amounted to 10,800 in London, 5,900 in Scotland, 1,200 in Northern Ireland, and 3,200 in Wales.

Remortgaging lending values saw an increase, but all other sectors in the housing market lending declined. First time buyer loans in London declined by 16%, by 23% in Scotland, 25% in Wales, and up to 30% in Northern Ireland. Loans to homemovers fell by 38% in Northern Ireland, 27% in Wales, 18% in London, and 17% in Scotland.

Remortgage lending volume increased by 2% in London, 3% in Scotland, 6% in Wales, and 9% in Northern Ireland.

Demand from homeowners for remortgages is expected to gradually increase after a slow and weak demand over the past several months despite low interest rate deals. There are signs that demand could be growing in the first time buyer and homemover sectors as well because the housing market is expected to see a boost.

Lenders are still competitive and are offering low interest rate deals which should be getting the attention of borrowers because as demand grows the competitive environment will cease to exist and the cheap deals available now could be pulled.