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Remortgaging up 20% against June last year – BBA

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  • 24/07/2015
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The numbers of homeowners remortgaging rose 20% year-on-year in June driven by competitive product rates, keenness to fix and the lending slowdown after the Mortgage Market Review implementation on 26 April. 

Mortgage approvals in general were around 8% higher in June than this month last year, according to British Bankers’ Association (BBA) figures.

The high street banking figures showed lending to larger companies is still subdued, as alternative capital market finance grew by some £8.9bn in the first half of 2015.

The proportion of active credit card accounts is at its highest for four years and savings levels also ticked up this month.

Richard Woolhouse, chief economist at the BBA, said: “The housing market is beginning to hot up again, with a pick-up in the number of mortgage approvals for the last month. Interestingly, we’ve also seen an increase in the number of people remortgaging, which could be down to savvy borrowers taking advantage of competitive deals on fixed-rate mortgages ahead of a possible rise in interest rates.

He added: “It’s good news that savings deposits are also up this month, as consumers put away a little something extra for a rainy day.”

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “The latest statistics from the British Banker’s Association showing that mortgage approvals are on the rise is great news for the market and borrowers alike.

“This rise is partly fuelled by record-low mortgagee deals: the average two-year fixed rate mortgage has fallen from 3.67% a year ago to 2.75% today, and borrowers are clearly taking advantage of these low rates to secure lower monthly repayments.

“However, with Mark Carney’s announcement that base rate is likely to rise in the near future, these low rates will not be around for long.”

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