According to the report, in the first eleven months of 2016 approvals were 4% lower than in the same period of 2015, remortgaging approvals were 14% higher annually and 13% higher to November 2016 than in the equivalent period of 2015.
Gross mortgage borrowing of £12.2bn in November was 5% lower than in November 2015 but net mortgage borrowing is 2.4% higher.
Dr Rebecca Harding, BBA Chief Economist, said: “The reduction in interest rates in August may have boosted remortgaging approvals, with consumers looking to take advantage of the current economic conditions and lock-in lower interest rates.
The volume of remortgaging was 14% higher compared to November 2015 and, in the first 11 months of 2016, remortgaging was some 13% higher than in the first 11 months of 2015. Similarly, other forms of advances were 10% higher than this time last year.
This, arguably, is a factor of the sustained low interest rate environment, rather than increases in house prices: households are choosing to raise finance through the value in their houses. However, the average remortgage value has flattened during 2016, suggesting that although there are more of these types of transactions happening, their value has not changed substantially."
