Remortgaging rises 40%

According to the latest BBA figures, mortgage approvals in September rose by 24% compared to last year, with remortgaging up 40% and house purchase up 14%.

Related topics:  Finance
Warren Lewis
26th October 2015
remortgage

Gross mortgage borrowing was £12.1bn in September, 17% higher than in the same month last year. After seeing slower demand in the second half of 2014, the overall mortgage stock is now 1.7% higher than a year ago.

House purchase approvals fell back slightly in September having risen consistently for most of 2015. However there were 14% more approvals than in the same month last year.

Remortgaging approvals also fell back slightly in September but were still 40% higher than September last year while other approvals were also 40% higher than a year ago.

Approvals overall were therefore lower than in August but 24% higher than at the same time a year ago.

Richard Woolhouse, Chief Economist at the BBA, said: “Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates. In particular, remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise."

Jonathan Harris, director of mortgage broker Anderson Harris, said: "Remortgaging numbers continue to be strong as borrowers take advantage of cheap mortgage deals and worry about the possibility of an interest rate rise. However, with Mark Carney, governor of the Bank of England, now suggesting that rates rises are a ‘possibility not a certainty’, it remains to be seen whether borrowers will lose the urge to remortgage.

Mr Carney did urge households to prepare for tighter monetary policy regardless and with fixed rates likely to remain competitive over coming months, there will be plenty of deals to tempt borrowers. Lenders are keen to lend and have plenty of funds to do so - as we move towards the end of the year it is possible that we could see some exceptional deals as banks look to meet their targets for the year. Borrowers who are coming up to remortgage should therefore consider taking the plunge as some of these fixed-rate deals will be almost too good to miss."

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