The latest Money and Credit report from the Bank of England found that a total of £7.7bn was lent in remortgages in February, across 43,882 loans. That was a significant drop from the £8bn lent in January across 45,859 loans, which in itself was down on the figures for December.
According to the Bank, approvals across all lendings secured on dwellings fell in February for the first time since August.
In total 125,622 loans were approved. The Bank’s figures revealed that £12.4bn was lent for house purchases, across 68,315 loans. Roughly the same amount was lent in January, albeit across an additional 1,000 loans.
Earlier this week the British Bankers Association claimed that remortgage approvals by banks dropped by 10% in January.
Eric Leenders, BBA managing director for retail banking, said: “Elevated approval volumes for house purchases and remortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year.”
This follows a very positive start to the year for the remortgage market, with the Council of Mortgage Lenders claiming that remortgage activity actually overtook purchases in January, with activity rocketing 54% month-on-month.