Record low interest rates have helped contribute to a surge in remortgaging, while buy-to-let valuations dropped in the last year, according to research from Connells Survey and Valuation.
In addition to low interest rates, the cut to the Bank Rate has benefitted remortgagers and first-time buyers, Connells said. Last month, there was a 16.8 per cent increase in remortgage valuations, compared to 12 months ago.
In addition to this, there was a 15.4 per cent increase in the number of valuations undertaken for first-time buyers, from October 2015 to October 2016.
John Bagshaw, Connells’ corporate services director, said: “Spurred on by competitive deals and record low rates, remortgagers have been one of the most active segments of the market.
“As rates have fallen over the last twelve months, savvy homeowners have been taking full advantage of the benign borrowing environment and competition between lenders. Borrowers can afford to be more selective than they could twelve months ago.
“The first-time buyer sector has continued to thrive as those looking to get onto the property ladder have taken advantage of various government schemes available. The Help to Buy mortgage guarantee scheme, which is due to end at the end of the year, has given the first-time buyer market a much needed boost over the past year, which is clear from the sizable increase in activity.”
Meanwhile, over the same yearly period, there was a 13.3 per cent fall in buy-to-let activity. However, last month did see a 4.5 per cent increase in buy-to-let valuations compared to September.