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Remortgaging on Increase as Rate Rise appears Imminent
Capital Fortune can report that remortgages have hit an 18 month high. The London
Mortgage Brokers
welcome today’s figures produced by the British Bankers’ Association (BBA) which indicate that the volume of approvals for remortgages has increased 25% when compared to the month of February last year. The figures now stand at 27,144, the highest level since July 2009.
The extend of people remortgaging appears on the increase with the latest figures approvals also increased by 3% on the previous month’s total of 26,417. Net mortgage lending has also grown by 2.5% which is an increase of £1.3bn over the month.
The main high street banking groups, such as Lloyds, Santander and Nat West are all represented by the Association and it has announced that the stronger remortgage activity has helped sustain gross mortgage lending, which did fall slightly in from £8.1bn in January to £7.9m in February 2011.
Lending has been generally down and over an average of 6 months lending is down £8bn an 8% reduction in gross lending this time last year.
People buying houses has fallen in recent months and approvals on house purchase has fallen by 11. The average house purchase approval value was £139,900, while the average value for remortgages was £126,700.
The Bankers Association also reported that the demand for equity release has also found that approvals continued to be weak with almost no change on January at 15,242. This was 16.5% lower than February 2010.
Capital Fortune, Business manager Rob Killeen stated that “Whilst the general trend in mortgage lending remains weak, there is good news with an increase in remortgaging and many borrowers are looking to fix in their mortgages given the indications of an imminent rate rise”
At the last meeting of the Monetary Policy Committee (MPC) the bank remained split 6-3 against a rate rise with opinion divided on how to tackle inflationary pressures without stifling growth. Spencer Dale and Martin Weale repeated their calls to immediately increase the Bank Rate by 25 basis points. Andrew Sentance again argued for a 0.5% rise, according to the March meeting minutes published today.
The governor Mervyn King, deputy Paul Tucker and four other members voted to hold rates at their historic low of 0.5%. This was a previous repeat of last month.Spencer Dale and Martin Weale repeated their calls to immediately increase the Bank Rate by 25 basis points. Andrew Sentance again argued for a 0.5% rise, according to the March meeting minutes published today.
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