UK housing activity has shifted from remortgage to purchase

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Mortgage activity has shifted away from remortgaging to home purchases thanks to the stamp duty holiday, research from Trussle found.

More homeowners are moving to a new home (56%) than remortgaging (44%), compared to this time last year, where the majority were prioritising remortgaging (63%).

Miles Robinson, head of mortgages at Trussle, said: “After an uncertain year, it’s encouraging to see house prices rising and the property market moving, with a sustained interest for house moves.

“While many homeowners contemplate buying a new home, it’s important to keep on top of your current mortgage and consider remortgage when the time is right.

“Every year, thousands of homeowners unknowingly move onto a high standard variable rate (SVR) when their mortgage deal ends and their monthly payments can increase considerably.

“Homeowners can save £344 on average per month by remortgaging, which is a significant sum.

“In these unprecedented times, we’d encourage those who are concerned about their finances to keep an eye on their mortgage. It’s worth using a remortgage calculator to see if switching to a better deal could save money.”

Homeowner appetite for remortgaging started off the year strong, with applications in January up 196% month-on-month.

As the UK entered lockdown remortgage applications jumped 54% during March.

Then the stamp duty holiday saw mortgage applications from next time buyers surge by over 73% in June – while this only increased after the stamp duty holiday was launched in July.