Homeowners are in a rush to remortgage as the countdown to the May meeting of the Bank of England’s committee that decides on changes to the base rate continues.
The latest figures from UK Finance, the trade body for lenders, says the number of people remortgaging rose by 11.3 percent on the year to 35,400 in February.
Those seeking a new mortgage for their current home borrowed a total of £6 billion from UK lenders in February as homeowners looked to lock in to lower interest rates before any potential change in the base rate.
The Bank of England’s monetary policy committee will meet on May 10 with many commentators predicting that the committee will raise the base rate by 0.25 percent from its current level of 0.5 percent. The last rate rise, of 0.25 percent, came in November last year and was the first increase in the base rate in a decade.
Homeowners looking to fix costs
Meanwhile, 25,200 first-time buyers completed a mortgage in February, up 2.4 percent on the same month a year earlier. According to UK Finance, the average first-time buyer is 30 and has a gross household income of £41,000.
Jackie Bennett, director of mortgages at UK Finance, said: “Homebuyers have shaken off the winter blues, with house purchases by first-time buyers and home movers reaching their highest levels in February for over a decade.
“Remortgages are also up year-on-year, as homeowners look to fix costs amid anticipation of further interest rate rises.”
Homeward Legal is your first stop when you’re remortgaging and looking for a conveyancing solicitor. All the solicitors on our nationwide panel are also on the mortgage lenders’ panel of approved solicitors, meaning they can act swiftly and efficiently on your behalf.
Call our expert team now on 0800 038 6699 or get an instant, no-obligation quote for your remortgaging conveyancing here.