Remortgaging at highest level since 2009

18th September 2017

New data from UK Finance reveals that lending for house purchases in July was lower than in the preceding month but higher than the same month a year ago.

Home movers borrowed £7.1 billion in July, down 9% compared with June but up 15% compared with July 2016. This equated to 32,800 loans, down 10% on June but up 10% on July 2016 figures.

Remortgaging on the part of homeowners totalled £6.7 billion, up 12% compared with June 2017 and July 2016 levels. The number of people opting to remortgage totalled 36,800, up 7% on June and 10% on July 2016.

Buy-to-let lending totalled £3.2 billion in July, up 7% compared with June 2017 and July 2016. This equated to 20,500 mortgages, up 5% on June and 9% on July last year.

UK Finance’s head of mortgages policy, June Deasy, said: “Remortgaging strengthened in July and reached its highest level since January, with customers attracted by borrowing rates that are at or close to their historic low point.

“The increase in activity in July means that, over the last year, the number of people remortgaging has been at its highest since 2009.

“Lending for house purchase was lower in July than in the preceding month, and we expect the market to continue to soften a little in the coming months.”

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