Remortgage market drives April lending increase

Remortgage market drives April lending increase

Gross mortgage lending in April is estimated to have hit £20.4bn, which is 13.3 per cent more than a year earlier, according to UK Finance.

Figures released today (25 May) by UK Finance showed the number of total mortgage approvals has also risen and is 11 per cent higher.

This increase is primarily driven by remortagage approvals, which were almost 30 per cent more than a year earlier. 

Eric Leenders, managing director of personal finance at UK Finance, said: "April saw steady growth in mortgage lending and approvals, following a slowdown in activity the previous month. This was driven by strong remortgaging levels, as borrowers locked into attractive deals amid expectations of a base rate rise."

Alan Lakey, director of CIExpert and Highclere Financial Services, said: “This is no surprise really. Many people have taken advantage of the low interest rates and with lenders being less restrictive over the past 2 years there has been an increase in borrowing whilst it remains cheap.

“Once rates start edging up the demand will fall off until borrowers believe rates have levelled out."