Mortgage approvals reached a 2-year high in December led by strong remortgage activity, the Bank of England’s Money and Credit Report has found.
Mortgage approvals reached a 2-year high in December led by strong remortgage activity, the Bank of England’s Money and Credit Report has found.
In December there were 124,803 mortgages worth £20bn of which remortgaging accounted for 41,708 and £7.1bn – a 9,000 increase from the same period one year earlier.
Peter Williams, executive director of the Intermediary Mortgage Lenders Association, said: “The continued appetite for remortgaging was likely to be a sign of homeowners eager to capitalise on market competition and lock into lower rates, especially with US raising interest rates for the time in nine years and expectations the UK would follow suit in the not-too-distant future.
“Economic conditions have prompted another about-turn and the lack of certainty in domestic and global markets means the Bank of England’s first rate rise has again been pushed back.
“Nevertheless, the UK mortgage market remains in good health, particularly for mainstream borrowers. Rising house prices are continuing to push up homeowners’ equity and give them an incentive to remortgage to access improved deals.”
Brian Murphy, head of lending at Mortgage Advice Bureau, said it’s telling that its own data reveals that fixed rates fell across the board in December.
He added: “Growing numbers of homeowners are wising up to the fact that it pays to remortgage, particularly if moving from a poor value standard variable rate.
“Borrowers who are comfortable with a long-term commitment can take advantage of today’s rates by locking into a fixed product, avoiding higher mortgage bills when an interest rate rise eventually kicks in.”
