Remortgaging approvals hit a nine-year high ahead of base rate increase

Remortgaging approvals hit a nine-year high this October, as homeowners rushed to secure good deals ahead of the Bank of England’s (BoE) widely anticipated interest rate hike, which was announced at the beginning of November.

According to a BoE report published last week, remortgaging approvals hit 51,593 in October – the highest figure on record since October 2008.

Meanwhile, net lending sat at £3.4 billion last month, despite the fact that the number of loans granted on home purchases fell to a new low of 64,575.

Commenting on the data, the BoE has acknowledged the fact that many buyers rushed to secure attractive fixed-rate deals ahead of the Bank’s landmark decision to increase its base rate from 0.25 to 0.5 per cent.

However, Mark Harris, of mortgage lender SPF Private Clients, has noted that overall, mortgage rates appear to have “remained competitive” since the base rate increase was announced.

“As we head towards Christmas, the mortgage market continues its steady progress, which is very encouraging,” he said.

“Mortgage rates continue to be competitive despite the base rate rise… and with a further interest rate increase not likely anytime soon, we can’t see this situation changing.

“Much depends on Brexit negotiations and how well they proceed,” he said.

The following two tabs change content below.
Nigel is the Managing Partner and Head of Litigation and Dispute Resolution in the London office of Mackrell Turner Garrett.