The mortgage market is enjoying a definite period of recovery at present, with consumer confidence returning and borrowing increasing as a result, and in fact, mortgage lending has just recorded the highest annual increase in seven years!
According to figures from the British Bankers' Association (BBA), gross mortgage borrowing stood at £12.2bn in August, an increase of 14.3% on an annual basis and the largest rise since 2008.
Not only that, but mortgage approval volumes are also witnessing considerable improvement, with the overall number of approvals in August being 23% higher than a year ago. Within that, house purchase approvals were up 16%, while remortgaging saw an even sharper rise, being up 38% annually and standing at its highest level for four years.
Time to seize the day!
Given the rising number of people getting in the action, it could be time to start considering your options. The market is ripe for the taking – not only are there a growing number of products available, but mortgage rates are still highly competitive, and many people want to take advantage of them before they start to rise.
"It's unsurprising that mortgage borrowing is on the rise," said Charlotte Nelson, finance expert at Moneyfacts. "Base rate speculation is rife at the moment, but by opting for a low fixed rate deal, particularly over the longer term, borrowers can buffer themselves against any rate rises in the near-future. Many borrowers are therefore seizing the day and grabbing a low mortgage rate while they can."
Remortgagors in particular are taking advantage of the situation, undoubtedly driven by the drop in rates – our figures show that the average two-year fixed rate for remortgage customers has fallen from 3.45% to 2.57% in the last year, an impressive drop of 0.88%. "Remortgaging while good deals are on the market can substantially reduce monthly payments," explained Charlotte, "especially if the consumer is sitting on a high Standard Variable Rate (SVR)."
However, these low rates won't last forever – and in fact, they're already starting to edge up – so now's the time to get on board if you really want to benefit. Check out our best buys to see just how low your repayments could be.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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