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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Budget 2016 predictions: what to expect

Chancellor George Osborne is set to deliver his Budget speech on Wednesday. Here's a list of predictions from the experts.

Close