Research by the Coreco Group and the Mortgage Advice Bureau has revealed encouraging news about the state of the remortgage market.  June experienced a major boost in the number of remortgages compared with May through a surge of almost 30%.  Year on year comparison was even more impressive, as remortgage activity increased 65% in June 2011 compared with the same time last year.  The level of remortgages has reached its highest point since September 2008.

Remortgage data has been favorable in other areas as well.  A 5% increase in fixed rate products took place from May to June, reaching 64%.  The average loan size has also increased almost 10%, to 150,740 pounds.

The buy to let remortgage market, in particular, remains a strong sector with continued high demand.  Conditions seem favorable for the buy to let market to remain strong by many analysts’ estimations.

Brian Murphy, head of lending at Mortgage Advice Bureau, commented on the high demand which exists for remortgage products, especially fixed rate deals, saying: “Mortgage activity in June continued its positive rebound, with applications up significantly for the second month running, following a sluggish April. 

“In particular, remortgage activity was comparatively strong with borrowers taking advantage of all time low fixed rates.”

He is surprised that many homeowners are taking advantage of low rate deals for a remortgage, since the feverish talk of a Bank of England rate hike has subsided.  A recent estimation from analysts about a hike not happening until next year would normally cause a corresponding hesitation from borrowers to act on any types of deals.