You are here: Home - Mortgages - Remortgage - News -

Rise in remortgaging in January

0
Written by: Christina Hoghton
10/03/2016
Borrowers are seeking out competitive new deals and increasingly switching their homeloan.

Remortgagors borrowed £5.8bn In January, up a significant 35% on December and 32% compared with a year ago, according to the Council of Mortgage Lenders.

This totalled 33,100 loans, a rise of 28% month-on-month and 19% compared with a year ago.

The substantial increases in remortgaging month-on-month (and year-on-year), resulted in the highest lending borrowed in a single month for remortgaging in the UK since January 2009.

Purchase business flat

Home mover activity was also affected by the seasonal lull, with January experiencing the lowest number of home mover loans advanced for house purchase since February 2015.

Home movers borrowed £5.1bn, down 24% on December but up 11% compared with a year ago. This totalled 24,800 loans, down 26% month-on-month but up 3% on January 2015.

First-time buyers borrowed £3.3bn in January, down 27% on December but up 14% on January last year.

This was the lowest first-time buyer borrowing level since February 2015 and in line with the expected seasonal dip in activity. Looking through seasonal factors, lending was flat in January, compared with December 2015.

However, affordability was slightly improved this month with average loan sizes and loan-to-income multiples decreasing compared to December. The proportion of income first-time buyers are committing to capital and interest repayments remained at its lowest level since records began in 2005.

Paul Smee, director general of the CML, commented: “We are now pleased to be able to analyse monthly lending on a seasonally adjusted basis. While the unadjusted data appears to show large falls in January compared with December, stripping out the usual January lull we see a general picture of flat house purchase lending but a significant uptick in remortgage activity, as borrowers continue to seek attractive new deals despite the lower-for-longer expectations for interest rates.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week