Remortgaging rockets as borrowers lock into new deals before rates rise
Remortgaging in January 2018 reached a nine-year high, according to UK Finance.
The trade association revealed there were 49,800 new homeowner remortgages completed in January 2018, a massive 19.1% more than in the same month a year earlier.
This is the highest monthly number of remortgages since November 2008, when the figure stood at 51,300.
The £8.9bn of remortgaging in January 2018 was 20.3% more year-on-year.
Jackie Bennett, director of mortgages at UK Finance said: “Remortgaging in January reached a nine-year high, as a number of fixed rate mortgages came to an end while borrowers locked into attractive deals amid expectations of further interest rate rises.
“While an increase in remortgaging is expected in the New Year as people put their household finances in order, this strong growth is above the seasonal fluctuations we tend to see at this time of year.”
Rise in purchase lending
The number of first-time buyers and home movers also increased compared to the same period last year, noted UK Finance’s latest mortgage trends update.
There were 24,500 new first-time buyer mortgages completed in January 2018, 7% more than in the same month a year earlier. The average first-time buyer is now 30 and has a household income of £41,000.
There were 25,000 new home mover mortgages completed, some 6.4%% more than last January, and lending by value rose 10.2% over the year. The average home mover is 39 and has a gross household income of £55,000.
Fewer landlords buying-to-let
However, there were just 5,600 new buy-to-let house purchase mortgages completed in January 2018, some 5.1% fewer than in the same month a year earlier.
But remortgaging by landlords was up.
There were 16,500 new buy-to-let remortgages completed in January 2018, 17.9% more than in the same month a year earlier, and up 18.2% by value.
Bennett added: “Growth in the buy-to-let market remains subdued, reflecting the ongoing impact of recent tax and regulatory changes.”