Mortgage approvals drop but remortgages rise

3rd November 2015

Mortgage approvals in the UK dropped in September for the first time in four months, according to new figures from the Bank of England.

The number of mortgages approved by lenders declined by 1.1% from 70,664 in August to 68,874 in September. However, approvals rose by 21.6% year-on-year in September from 100,290 to 121,983.

Despite the slight dip in mortgage approvals for the month, total lending in September to individuals grew by £3.6 billion, the highest level since 2008. The number of remortgage approvals reached 41,163 compared with 40,922 in August.

Head of lending at the Mortgage Advice Bureau, Brian Murphy, said: “The rush to remortgage is on, as the average pricing for two- and five-year fixed-rate mortgages saw the first rise in over a year last month.

“Savvy homeowners who are watching the market closely are therefore likely to be making the most of the competitive pricing currently available before rates start to creep up.

“Today’s remortgagers will be in a strong position to access these deals, with many possessing improved housing equity as a result of healthy house price growth.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.