The annual growth rate for mortgage lending was unchanged in June at 3.2 per cent, according to Bank of England figures released today (30 July).
The bank’s latest money and credit statistics showed the growth rate has remained at around 3 per cent since late 2016 - a modest increase compared to before the financial crisis levels, but still above the growth rate recorded between 2009 and 2013.
Households borrowed an extra £3.9bn secured against their homes in June, slightly more than the average of the past year.
The number of mortgage approvals also increased slightly in June to 66,000 while the number of remortgage approvals fell by 7.3 per cent to 48,000 - but despite this drop, approvals for remortgaging remained broadly in line with the average over 2018.
Matt Andrews, managing director of mortgages at Masthaven, said steady mortgage approvals showed consumer appetites remained strong as borrowers took advantage of the various competitive rates and products on the market.
He said: "Although remortgaging fell in June, it still represents the bulk of activity, largely due to the anticipated Bank of England rate rise. While timescales for this change aren’t clear, brokers should see this as an opportunity to re-engage with their back-books."
Ross Boyd, founder of Dashly.com, said it had never been more important for borrowers to be alert to the benefits of remortgaging because of a potential interest rate rise when the monetary policy committee meets later this week.
He said: "Remortgaging onto a better rate can be the difference between households coping and coming under financial pressure.
"Households today are having to make important financial decisions against a frenzied backdrop of interest rate uncertainty, stubbornly high inflation and the politico-economic maelstrom that is Brexit.
"Market conditions are about as far removed from stable as you could get and so it's no surprise many households are choosing to remortgage rather than hire a removals van."
rachel.addison@ft.com
