"The real story can be seen in the remortgage numbers which have continued to climb over the year."
Mortgage approvals for remortgage rose to 51,000 in October, the highest figure seen since August 2018 and above the six-month average of 48,423.
Mortgage approvals for house purchase fell slightly in October, to 65,000, but remained within the narrow range seen over the past two years.
Net mortgage borrowing by households was £4.3 billion in October, £0.4 billion higher than in September.
Rob Barnard, director of intermediaries at Masthaven, commented: “The mortgage market has been broadly stable for the last three years, highlighting resilience amid ongoing political uncertainty. This is reflected in the approval rates, showing healthy movement within the lending market. However, the real story can be seen in the remortgage numbers which have continued to climb over the year. More and more homeowners are staying put to release funds in order to improve or even extend their properties and save themselves potential selling and moving costs in the long run.
“However, bridging or second charge loans could be more appropriate as they offer a shorter-term solution and limit the spread of the cost over the lifetime of the mortgage. Given the growth in remortgaging numbers, brokers would be wise to work with lenders who have a wide range of products in their arsenal to ensure they are offering the best option available to their customer.”
