Remortgage approvals soar to eight-year high: BoE
More and more consumers are prudently taking advantage of the good deals available in the market, saving themselves potentially thousands of pounds a year by remortgaging.
The number of approvals for remortgaging was 45,683 in November - the highest figure seen since October 2008, according to the latest Bank of England Money and Credit figures.
The figure compares to the compared to the 43,513 remortgage deals approved in October and an average of 42,664 over the previous six months.
The number of loan approvals for house purchase was 67,505 in November, remaining steady on the 67,518 recorded in October and the average of 64,178 over the previous six months.
Lending secured on dwellings increased by £3.2 billion in November, broadly in line with the average over the previous six months.
Total lending to individuals increased by £5.1 billion in November, compared to an average monthly increase of £4.7 billion over the previous six months.
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “In the current climate of low interest rates, more and more consumers are prudently taking advantage of the good deals available in the market, saving themselves potentially thousands of pounds a year by remortgaging.
“As we welcome the start of the New Year, those borrowers on a Standard Variable Rate or coming to the end of their mortgage term who have not yet considered remortgaging should speak to an adviser. There is no telling when rates could rise, and it could even be this year. By contacting a broker, these individuals will put themselves in the best position to secure a good deal on a new mortgage and save themselves a significant sum of money, something that many will value particularly as we end the festive period.”
Richard Pike, Phoebus Software sales and marketing director, added: “Good news at the beginning of the year comes from the Bank of England in the form of increased approvals towards the end of 2016. There still appears to be an appetite to buy or remortgage despite all the uncertainty that has come over the last year.
"As we head into a new year, and further changes come into effect for buy-to-let, it is difficult to predict how the overall market may be affected. Nevertheless the consistent low interest rates and new deals from lenders is likely to keep the rest of the market buoyant, at least until March when the next wave of economic uncertainty comes in the form of Article 50.”