Rarely does the remortgage sector within the UK housing market lead headlines regarding the market overall. However, since the beginning of the year 2017, this has been the case. House sales as well as house price growth are together taking a back seat to the obscure sector and it is surprising many within the market. The slow start in house sales and price growth are contradicting activity which took place within the last quarter of 2016.

Remortgage approvals as well as applications remain quite strong and many estimate this to continue until interest rates begin to rise. Many UK house owners who were riding the fence following the historic Brexit vote have now made the wise decision to remortgage and obtain a brand new, more favourable mortgage package.

This has been pleasing due to the amount they have been able to save off the current cost of the monthly mortgage payment. On average, home owners are now saving £49 per month.

The strong start within remortgage has not been echoed in other parts of the housing market so far this year.

Jonathan Hopper, managing director of Garrington Property Finders commented on recent figures, saying: “With the prospect of an interest rate rise – and of the cost of living rising faster than people’s wages – back on the horizon, caution will become a dominant force in 2017.

“With the only certain thing about the Brexit saga being that it will continue to generate uncertainty, accurately forecasting market conditions over the coming months is a huge challenge.”

Hopper added: “On the front line we’re seeing that buyers are frequently price sensitive, yet committed. Prices are being supported by the imbalance between demand and supply, but good deals are being done on correctly-priced quality homes.

“The modestly improving picture painted by January’s index may well set the tone for the year ahead. On this evidence we will see further price rises, but at a more subdued pace as house price to earnings ratios begin to bite in many parts of the country and restrict price growth.”