Homeowners take advantage of low interest rates
A significant 80% of remortgage applications resulted in an offer in the third quarter of 2016, up from 77% in the previous three months, according to the Intermediary Mortgage Lenders Association.
The trade body said that 83% of those remortgages offered translated into completed deals. As a result, 67% of all remortgage applications completed – the highest percentage seen in any quarter this year.
Executive director Peter Williams said: “The low interest rates available to borrowers almost certainly contributed to this increase, with borrowers able to switch on to very attractive deals.
“Rates are unlikely to fall much further, but the sustained 0.25% Base Rate means they are also unlikely to rise – which should encourage further remortgage activity.”
Buy-to-let mortgage applications had a 55% completion rate, while 52% of all specialist mortgage enquiries ended up completed, according to the research.
Williams added: “2016 has been a tumultuous year for the market, with the changes to Stamp Duty and the Brexit vote both affecting activity. However, the market has proved itself much more robust than many predicted it would be, and the industry is in a good place to continue this momentum into 2017.”