You are here: Home - News -

BBA: Remortgaging hits 18-month high

  • 23/03/2011
  • 0
BBA: Remortgaging hits 18-month high
The number of remortgage approvals increased 25% year-on-year in February to 27,144, the highest level since July 2009, according to the British Bankers’ Association (BBA).

Its latest figures showed that remortgage approvals increased 3% on the previous month’s total of 26,417, with net mortgage lending growing 2.5% to an increase of £1.3bn over the month.

The BBA, which accounts for the main high street banking groups, said stronger remortgage activity has helped sustain gross mortgage lending, which fell slightly in February to £7.9bn from £8.1bn in January.

This was down on the six-month average of £8bn and 8% lower than gross lending in February 2010.

House purchase approvals fell 11% year-on-year in February to 29,923 worth £4.3bn, despite being slightly up on January’s total of 29,159.

The average house purchase approval value was £139,900, while the average value for remortgages was £126,700.

The BBA found that equity release approvals continued to be weak with almost no change on January at 15,242. This was 16.5% lower than February 2010.

David Dooks, statistics director of the BBA, said: “Mortgage lending remains subdued, with only remortgaging on an upward trend, as borrowers lock into lower rate products currently available. Household demand for unsecured credit is also weak, as people continue to cut back on borrowing and build up deposits.”

There are 0 Comment(s)

You may also be interested in