July was the busiest month for remortgaging in more than a decade in the UK. Homeowners switched lenders or to better fixed-rate deals in greater numbers than had been seen since before the 2008 financial crash.
This was also immediately before the August decision by the Bank of England’s monetary policy committee to raise the base rate by 0.5 percent, meaning those who remortgaged in July took advantage of better mortgage repayment rates.
The Bank’s decision not to increase the base rate further was taken at its September meeting, and that will surely prompt more homeowners to check out if remortgaging would be better for their long-term financial security, particularly as the economy continues to look turbulent in the run-up to the UK leaving the EU in 2019.
Total borrowing rose by a quarter
The figures for remortgaging were revealed in the monthly report from UK Finance, the trade body for the financial industry. Some 46,900 homeowners, an increase of 23.1 percent on July 2017, borrowed a total of £8.7 billion. That borrowing level was up by more than a quarter (26.1 percent) on the same month a year ago.
Home-mover mortgages weren down 3.8 percent on the year, to 32,600, with the £7.3bn borrowed by home movers the same level as a year ago. And 31,400 first-time buyers completed their mortgages in July, borrowing £5.4bn along the way.
Jackie Bennett, director of mortages at UK Finance, said: “The residential remortgaging market saw its strongest July in over a decade, as homeowners pre-empted the latest Bank of England rate rise by locking into attractive fixed-rate deals.”
Best Value Conveyancing has right deal for remortgaging
With our commitment to low-cost, high-quality conveyancing services delivered quickly and efficiently, Best Value Conveyancing is the first port of call for homeowners looking to remortgage.
Our panel of solicitors across England and Wales are vastly experienced in dealing with the remortgage process, and as all of our solicitors are also on all of the lenders’ panels, delays in moving the transaction along are kept at a minimum.
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