House purchase and remortgage levels continue to rise

House purchase and remortgage levels continue to rise

House purchase loan approvals and remortgaging are continuing the rise, according to Bank of England figures.

Its figures showed the number of loan approvals for house purchase was 67,518 in October, compared with 63,594 in the previous month and 61,381 in August.

Meanwhile the number of approvals for remortgaging was 43,513, which has been increasing since the Bank of England lowered interest rates to 0.25 per cent in the summer.

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The number of approvals for remortgaging in September was 42,606 while in August it was 40,384.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “With the usual increase in buyer activity that comes with the autumn months, it is not surprising to see these figures show a continuing rise in the number of mortgage approvals in October.

“However, what these figures also show is an ongoing rise in the number of buyers choosing to swap their existing mortgage deal, undoubtedly to take advantage of lower rates following the Bank of England’s lowering of the base rate in August.

“For those borrowers who haven’t yet considered remortgaging, it would prudent to contact an adviser who can help get a better rate on their mortgage that could save them the equivalent of a monthly pay rise, especially if they are currently on an SVR.”

The Bank of England’s figures also showed the number of approvals for other purposes was 13,427, compared to the average of 12,726 over the previous six months.

Matt Andrews, managing director of Bluestone Mortgages, said: “The fact that the Autumn Statement has promised a £1.4bn investment into house building is likely to support the rise in purchase and lending activity even further, as this may finally help to address the persistent lack of UK housing supply.

“However, whilst this market continues to expand, there are still many borrowers who remain underserviced by mainstream lenders.

“Contractors, the self-employed, those with adverse credit histories are still being automatically rejected for credit because they don’t fit rigid lending criteria.

“Brokers have a critical role to play in this regard, as their specialist experience will enable them to find the best and most suitable solutions for their clients, based on an holistic view of their financial situation.”