Remortgaging continues to rise after rate cut

Remortgaging continues to rise after rate cut

Remortgaging levels continued to rise towards the end of last year, according to the Bank of England's latest figures.

In December there were 47,721 approvals for remortgaging, an increase on the previous month when there were 46,000 - the highest level in eight years.

Remortgaging has been increasing since August when the Bank of England lowered interest rates to 0.25 per cent.

Article continues after advert

Over the past six months there has been an average of 43,266 approvals a month for remortgage.

Approvals for house purchase have also been increasing, but at a much slower rate.

During December there were 67,898 such approvals, an increase of only 400 on the month and an increase of 500 on the month before that.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: "The Bank of England’s figures clearly show a strong end to the year for the mortgage market. It is particularly encouraging to see so many savvy borrowers taking the initiative and saving themselves a potentially significant sum of money by swapping their existing mortgage deal.  

"Now that the busy festive period is behind us, those borrowers that have not yet remortgaged should get in contact with a broker who can offer the professional advice they need to find a more favourable deal.

"Mortgage rates are not solely determined by the Bank of England’s base rate, so borrowers would be wise to act now before rates inevitably rise."

Overall mortgage approvals for December were 128,823 with a total value of £21bn, an increase of slightly more than 2,000 on the previous month.