Rise in remortgage business in July
Remortgage business was on the increase in July as interest rates remained low, new data from the Bank of England has shown.
In total remortgaging increased to £7.3 billion in July from £6.6 billion in June, outshining overall house buying lending which dropped to £12.6 billion from £13.7 billion the previous month.
Jonathan Samuels, chief executive of Octane Capital, said:
“Transaction levels are down and the market has without doubt cooled, but there is still demand.”
Last week the National Landlords Association called on landlords to remortgage ahead of PRA changes to the underwriting of portfolio landlords and tougher borrowing conditions on buy-to-let mortgage applications (to read this story please click the following link: ‘NLA urges BTL landlords to remortgage as PRA borrowing rules nears’).
Jorden Abbs, head of operations at Commercial Trust, commented:
"With the cost of living on the rise and wages not increasing on a par with inflation, it is hardly surprising that many property owners are looking to remortgage, particularly given the current low interest rates available on the buy-to-let mortgage market.
“Many home owners are looking to lock themselves into better deals in anticipation of possible interest rate charges in the future.
“At Commercial Trust we have seen an 8.7% year on year increase in the volume of completed remortgage transactions from the start of the year to the end of July.
“However, remortgaging is not for everyone and each case should be assessed on individual circumstances.
“Commercial Trust works with a wide variety of lenders who can provide remortgages to those looking to switch. “
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.