Remortgaging in the UK is up by almost a third on a year ago as more homeowners look to tie up long-term deals that won’t be affected by any potential interest rate rise.
According to figures from UK Finance, £20.4 billion in mortgage lending was agreed in April, up 13.3 percent on the same year in 2017. And UK Finance, the trade body for the finance industry, said the increase is primarily down to remortgages.
Mortgage approvals were also up by 11 percent, according to UK Finance’s Household Finance Update.
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Borrowers lock into attractive deals
Eric Leenders, managing director of personal finance at UK Finance, said: “April saw steady growth in mortgage lending and approvals, following a slowdown in activity the previous month. This was driven by strong remortgaging levels, as borrowers locked into attractive deals amid expectations of a base rate rise.”
The London update revealed that while first-time buyer mortgages in the capital were down 3 percent on the same quarter in 2017, there were 15,300 new homeowner remortgages in the capital, up 4.1 percent on 2017 and worth a total of £4.67 billion.
All eyes on interest rate rise
The Bank of England base rate remains at 0.5 percent after policy makers decided against an increase at their last meeting in May. However, many commentators remain convinced a rise is likely sooner rather than later.
The knock-on effect of a rise for those with a mortgage on a variable rate would be instantaneous and expensive. Hence the rush for many homeowners to sort out a deal on a longer-term fixed rate that will allow them to fix their repayments for three, five or even 10 years.
Homeward Legal can help smooth the way for your remortgaging deal. We work with conveyancing professionals who are experienced and practiced in remortgaging, and all the solicitors we work with are on the lenders’ panel, ensuring there would be no unexpected hiccups along the way.
Talk to our team now on 0800 038 6699 to get a no-obligation quote with no hidden expenses tucked away. Or you can get an instant quote online.