The number of approvals for remortgaging rose to 41,708 from 39,161 in November and the average of 39,540 over the previous six months.
Total lending to individuals increased by £4.4 billion in December, compared to £5.3 billion in November and £4.6 billion over the previous six months.
Net mortgage lending dropped from £3.9 billion in November to £3.2 billion in December.
Richard Pike, Phoebus Software sales and marketing manager, said:
“Well it’s official, the 2015 mortgage market finished on a high with lending in the month above the six month average in every aspect.
“The figures for remortgages show that this area, which has been sluggish, was boosted probably by the rash of deals on offer at the end of the year. Whether that will continue in the new year is the next question. Although rates are not all important for every client when it comes to remortgaging then rate is usually the driver. As for the rest of the market, the rush to complete on buy-to-let or second home mortgages before the end of March is likely to push numbers up and give us further growth in the first quarter.”
Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented:
“Mortgage approvals reached a near two-year high in December, rounding off a successful year for borrowers. Existing homeowners were the frontrunners in this growth, with the number of remortgage approvals rising by more than a quarter since December 2014.
“Borrowers benefited from rock-bottom mortgage rates throughout 2015, and our data shows that rates continued to fall across all fixed rate products in December. Growing numbers of homeowners are wising up to the fact that it pays to remortgage, particularly if moving from a poor value standard variable rate. Borrowers who are comfortable with a long-term commitment can take advantage of today’s rates by locking into a fixed product, avoiding higher mortgage bills when an interest rate rise eventually kicks in.
“For those who do not have the comfort of already sitting on the property ladder and are looking to buy for the first time, the outlook is still positive. Although not quite up to pre-recession levels, mortgage approvals for house purchase have improved markedly in recent years and lenders are battling for business. However, with house prices continuing to rise, affordability remains a concern, and today’s low mortgage rates aren’t a permanent fixture of the market.”
