Mortgage lending has seen a normal slowdown since the beginning of the year. It is out of season for house purchase and the cold weather seems to always have a chilling effect on the market. February data indicates home mortgage lending improved a slight 2% over the same month of last year, whilst month on month comparison show a 6% increase on the month of January.

First time home buyers are still facing barriers to purchasing a home. Increasing home prices over the past few years combined with low wage growth have created an environment a bit discouraging to those pulling together enough for a down payment. Data from February indicates month on month increase of 6% and a 12% increase over the same month last year.

Remortgage activity is sturdy due to lender competition combined with low interest rates hanging around. Lenders are still able to offer deals which make it possible for UK home owners to save possibly massive amounts off the cost of the monthly mortgage payment.

Remortgage is holding ground as the go-to mortgage lending tool for those in search of some relief of a high mortgage payment. House owners are able to access home equity and use the funds for debt repayment, home renovation, or a holiday.

Paul Smee, director general of the CML, commented on the latest data, saying: "Seasonal factors traditionally keep the market quieter in winter months, but 2017 began relatively strong on the house purchase side. Borrowers took out more loans to purchase a home in the first two months of 2017 than any year since 2007. This is down to strong first-time buyer activity which has consistently matched home mover borrowing over the past six months, a trend not seen in the UK for 20 years.”