However, the expected seasonal slowdown and adverse weather conditions saw total valuations fall by 19%, compared to the month before, reported Connells in its latest survey and valuation results.
The number of valuations for remortgaging was 88% higher than the end of 2009, and buy-to-let activity increased by 8% last month compared to November, up 53% from December 2009.
Paul Staley, corporate services director of Connells Survey and Valuation, said: “The increased level of remortgaging compared to a year ago shows there are signs of life in the mortgage market as borrowers once again seek to lock into attractive fixed rate products.”
Ben Thompson, director of mortgages at Legal & General, said its own remortgaging figures showed a 5 to 10% increase on previous months, which he said was a “meaningful” uplift.
“Who knows if this is the beginning of a remortgaging swing upwards, but we can definitely say the remortgaging market has bottomed out,” he said.
Staley added that continued growth in the buy-to-let market was being driven by new products being launched, which has helped boost valuation activity.
“One in seven of our valuations are now for prospective landlords who are looking to take advantage of improving yields and fast rising rents in the private rental sector,” he explained.
Sally Laker, managing director for Mortgage Intelligence said 2011 could surprise us by thereturn of two things – remortgaging and buy-to-let.
“All we need is an interest rate rise of 0.5% to spur on the remortgaging market. There’s also been more chat in the last few days than there has been for ages about a rate rise happening sometime this year.
First-time buyer activity dipped slightly last month, with the number of valuations for new buyers falling by 22% compared to November 2010 – a year on year decrease of 26%.
The number of home movers dropped by 17% month on month, a decline of 4% from December 2009.
