The UK housing market is steamrolling ahead and the latest mortgage lending data leaves little doubt of the existing strength. Lending remains competitive as banks and lending institutions continue to lower rates and give borrowers the funding they need to obtain property. Overall, housing prices are trending higher and are expected to rise even higher before leveling off. Lending increased year on year even though first time buyers are challenged to find any property they are able to afford.

Charlotte Nelson with Moneyfacts.co.uk commented on the latest data regarding mortgage lending, saying: “Mortgage borrowing has shown yet another year-on-year rise, which is unsurprising considering that rates in the mortgage market are still falling to new all-time lows. For example, the average two-year fixed mortgage rate has decreased from 3.06% to 2.56% in just 12 months, while the average five-year fixed rate has dropped from 3.60% to 3.20% over the same period.”

Nelson added: “As a result, it’s little wonder that many borrowers are jumping at the chance to remortgage to a better rate – the average Standard Variable Rate (SVR) currently stands at 4.81%, so by switching to the average two-year fixed rate, remortgagors can potentially save £2,926.32 in the first year*.”

A remortgage is still quite a mystery to many house owners. It is a process by which a lower mortgage rate can be obtained saving a house owner many pounds per month off the cost of the monthly mortgage payment.

It is also possible to gain access to valuable house equity which can be used for a holiday, to pay off old debt, or take on a house renovation.