One out of every three June property valuations came from remortgaging, according to Connells Survey & Valuation.
This growth in remortgage valuations is 7 per cent above the five-year average for June.
Standard remortgaging represents 23 per cent of market activity, while buy-to-let remortgaging accounts for a further 10 per cent of loans.
Connells says the rise is partly due to landlords wanting to remortgage to cut monthly outgoings due to eroded profit margins.
Another factor is low mortgage rates available to homeowners, incentivising them to refinance ahead of a possible base rate rise this year.
Connells corporate services director John Bagshaw says: “Remortgaging is now taking a leading role in the mortgage market.
“Low interest rates on offer are attracting owner-occupiers and landlords eager to offset rising costs. This has led to remortgage activity more than doubling since 2009 as a percentage of the market, with a base rate close to zero for a decade.”
Valuations from first-time buyers declined to 31% of the market in June. While this is 3 percentage points lower than June 2016, it’s in line with the five year average for the month.