The remortgage market expanded 17 per cent in May, compared to the same month of last year, figures from the Council of Mortgage Lenders (CML) have revealed.
The market was 25 per cent up on the month before, from 80,000 loan approvals to 99,000, accounting for 38 per cent of all mortgage lending.
The surge was related to a high number of fixed-rate deals coming to an end causing homeowners to compare mortgage rate deals in search of the best offers.
Loans for new purchases were also described as “robust” with the market growing 13 per cent compared to the same period of the year before.
The number of first time buyers increased to seven per cent of the market, from 31,400 in the same period of last year to 33,700 this year.
“Lending to first-time buyers and home-movers is strong, and today’s data reverses the dip in lending to these groups we witnessed in April,” said Michael Coogan of the CML.
“The growth of remortgaging and lending for house purchase in May reflect a growing and stable market. The signs are that this will continue, although maybe at a slower rate.”
© Adfero Ltd