Remortgage approvals reach 8 year high
For remortgaging approvals, November 2016 saw the highest number since October 2008 – 45,683.
The figure, from the most recent Bank of England Money and Credit statistics, can be compared to the remortgage deals approved in October of 43,513, as well as the latest six-month average recording of 42,664.
November saw 67,505 house purchase loan approvals, which at 67,518, remained steady during October, with an average of 64,178 over the past six months.
In November, lending secured on dwellings grew by £3.2 million, largely reflecting the average for the previous six-month period.
For individuals, total lending rose in November by £5.1 billion, compared to the average monthly growth of £4.7 billion over the past six months.
Commenting on the figures was Jeremy Duncombe. The Legal and General Mortgage Club Director highlighted the favourable consumer climate for remortgaging and the potential savings that could be made:
“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.”
Phoebus Software Sales and Marketing Director, Richard Pike, also commented on the growing approvals which came at the end of the previous year:
“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.”