Homeowners are continuing to remortgage in greater numbers, putting their finances in order before any possible increase in the Bank of England base rate.
The latest figures from UK Finance, the trade body for the financial services industry, revealed that more than 40,800 remortgages were completed in April, a rise of 36 percent on the same figures for 2017. The total amount of finance borrowed for remortaging was £7.5 billion.
Many homeowners are remortgaging as their current mortgage deal comes to an end and tying themselves into a new deal at a favourable rate that won’t be affected in the short term by a rise in interest rates.
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Lending up on a year ago
Buy-to-let remortgaging also rose by 32.4 percent, with 14,300 landlords borrowing £2.3 bn.
UK Finance figures show that there were 26,700 new first-time buyer mortgages agreed in April, a 3.5 percent rise on last year, while the £4.4 bn in new lending was 4.8 percent more than last year.
According to its analysis, the average first-time buyer is aged 30 and has a gross household income of £42,000. While the UK Finance figures refer to new first-time buyer mortgages and existing homeowner mortgages, homeowners who purchased their home in the last five years using the Government’s Help to Buy schemes are also starting to remortgage to pay off the interest-free loan and shop around for a better interest rate. For more information on how to remortgage a Help to Buy property, check out our information.
A total of £5.4 bn was agreed in new lending for 25,100 home-mover mortgages in April, down 4.2 percent on a year ago. The average home mover is 39 and has a gross household income of £55,000.
Locking into fixed-rate deals
Jackie Bennett, director of mortgages at UK Finance said: “Remortgaging activity bounced back to strong levels in April, as both homeowners and landlords put their house in order by locking into attractive fixed-rate deals ahead of an anticipated interest rate rise.
“This spike in remortgaging was also driven by a large number of fixed-term mortgage deal rates coming to an end, combined with increased efforts by lenders to contact their customers before their deal rate expires.
“The number of first-time buyers has grown year on year, outstripping the number of home movers. This may reflect the impact of measures such as the recent stamp duty cut and the Help to Buy scheme that are focused on getting more people onto the housing ladder.”
Don’t delay, ask Homeward Legal for help today
Homeward Legal can help homeowners with the conveyancing required for a remortgage deal. Talk to our team now about instructing a specialist solicitor experienced in dealing with this type of finance. All the solicitors on our nationwide panel are also on the lenders’ panel, meaning there is less likelihood of any delay in processing your case.
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