Re-mortgages have reached a four-year high, according to data released by the British Bankers’ Association.
Banks reported a 29 per cent increase in the number of re-mortgage approvals, the highest during the last four years. The British Bankers’ Association accommodates the six main banking groups, and said that the number of re-mortgage approvals had reached 24,400 in July this year, much higher than last year’s figure of 18,986.
The number of purchase approvals for the same period increased by 11 per cent to 46,033 from a previous figure of 41,316. Other types of secured lending also demonstrated a rise in approvals by 3.3 per cent. The total number of approvals increased by 15.4 per cent, reaching 77,451. Gross lending reached £11.8bn during the same period, the highest for four years. According to Richard Woolhouse, the chief economist for BBA, this was a 29 per cent increase on the previous year’s figure. He added that homeowners were taking action to lock into a low rate deal before the predicted rise in interest rates took hold. He added that although the new mortgage application regulations had been introduced, the process for re-mortgaging was still relatively straightforward.
Mark Harris, the chief executive of SPF Private Clients, said that although the interest rates are slightly higher, they are still extremely low, especially in comparison to historical deals. CeMAP training prepares mortgage advisers for helping those who wish to re-mortgage or buy their first home. Although the process may be relatively easy, many people still require professional advice.