Continued growth for remortgage sector

14th December 2017

Figures from UK Finance show that the number and value of loans for remortgage and house purchase rose in October, both compared with September and compared with October 2016.

Homeowner remortgage activity totalled £7.3 billion in October, up 15.9% compared September and 17.7% compared with October 2016. This corresponds to 41,100 remortgages, an increase of 16.1% month-on-month and 16.4% year-on-year.

Buy-to-let remortgaging totalled £2.4 billion, up 20% on September 2017 and October 2016. Remortgaging now accounts for just over 70% of all buy-to-let lending. There were 14,700 buy-to-let remortgages in October, up 20.5% month-on-month  and 21.5% year-on-year.

Capital and interest payments for new loans remain near record lows for home movers and first-time buyers, reflecting a competitive mortgage marketplace.

Commenting on the data, UK Finance’s head of mortgage policy June Deasy, said: “Over the last year, the number of loans for remortgaging have been at record levels; this trend looks set to continue further as we head towards the end of 2017 and borrowers seek to take advantage of low interest rates.

“Mortgage repayments as a proportion of income still remain at or close to their historic low point, and despite the recent base rate rise we can expect monthly mortgage payments to remain affordable for the vast majority of borrowers.”