Mortgage lending increases on low interest rates and rising UK house prices
The housing market is picking up, with homeowners looking to remortgage to take advantage of low interest rates and unlock some of the climb in property prices.
The number of approvals for home purchases was 68,764 in July, compared with an average of 64,186 over the past six months. Approvals for remortgages were 38,042, also higher than the average over the first six months of the year.
Remortgaging activity was spurred on after Bank of England Governor Mark Carney said the case for raising the Bank’s base rate would come into clearer focus at the end of the year.
“The remortgage sector is moving from strength to strength, as homeowners look to capitalise on the cheap rates available,” said Richard Sexton, director of e.surv chartered surveyors.
Rising house prices are also allowing homeowners to borrow more on their property, boosting remortgaging.