Remortgage demand from homeowners has been weak in face of the low interest rates being offered by lenders. Despite the opportunity to borrow cheaply, few homeowners have stepped up to get a new deal. Those that wait for long could miss out though for the low demand trend for a cheap remortgage could be about to end. The low demand seen previously will end as an expected boost in the housing market occurs.

According to data from LMS for the month of March, remortgage lending reached the lowest figure since March 2013. Gross mortgage reached £3.3 billion in March with the average annual remortgage loan declining by 6% at a level of £147,484 which is the lowest amount recorded since July 2013. The level of equity withdrawn by homeowners during a remortgage fell 19% fro, February to March. The volume of remortgages grew from February to March by 4% to 22,340 but it was 11% less than the number of remortgages recorded for the same time period last year.

Andy Knee, chief executive of LMS said, “At a time when interest rates and offers are at a record low, it is surprising to see that borrowers are remortgaging less often and are failing to capitalise on these offers.”

Now that the election is over, spring weather evolves to summer, consumer confidence grows, and the economy continues to strengthen the housing market is set to see a boost. That boost will impact demand for mortgages and remortgages as hints start to be seen that lenders will be pulling their cheapest deals due to an end of the low demand trend. Without a need to compete for borrowers, lenders will no doubt pull their lowest interest rate deals. Those hoping to take advantage of the cheap rates should stay alert and make a move to grab a new deal before the best ones disappear with little to no warning.