Re-mortgaging at nine year high
Published: 29 November 2017
The latest seasonally adjusted data released by the BoE shows that net mortgage lending has remained broadly unchanged at £3.4bn in October. However, underlying these figures was an increase in re-mortgage activity at 51,593 transactions, up from 48,133 the previous month and well above the monthly average of 45,670 for the previous six months. This is the highest level of re-mortgaging since October 2008.
November’s figures will be watched with interest to see if this level of activity can be maintained for the future given that the surge came ahead of expectations that the BoE’s monetary policy committee would raise the base rate from its historic low of 0.25 per cent thus increasing the cost of borrowing. They duly obliged on November 2nd.
Jeremy Duncombe of Legal & General Mortgage Club director is quoted as saying, “Any spike in mortgage approvals would seem to be a result of borrowers looking to lock into fixed rate deals before rates increase. It will be interesting to see what next month’s figures show.”
Mortgage approvals for new house purchases were at their lowest levels since September 2016.
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