Remortgaging plunges in October

October saw a sharp seasonal fall in remortgaging with a 21% drop compared to September.

But remortgaging activity still soared 53% in the year to October.

John Bagshaw, corporate services director of Connells Survey & Valuation, which carried out the research, said the remortgage market is "roaring" despite the drop in recent weeks.

“Those looking for cheaper rates have likely been tempted to remortgage to take advantage of the rock-bottom interest rates while they last.

“Many are also taking this opportunity to remortgage in order to release equity and so upgrade their current property.”

Bagshaw said now is a good time to move house as sales continue to climb and the government looks to improve housing market liquidity by kick-starting the construction of starter and mid-range homes.

“Low interest rates are not just a remortgagor’s dream, they also make it easier for home movers to climb the property ladder.”

Home mover valuation activity fell 27% between September and October but the sector registered 14% growth in the year to October.

John Bagshaw added: “With home values continuing to rise solidly and mortgage rates remaining low, this seems like more of a seasonal blip than the start of a trend.

“The housing market’s forward indicators remain strong.”