Lender price war pays off as remortgaging rockets by 10% in June
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The latest figures from the British Bankers’ Association shows that remortgaging rose by just under 10% in June.
In total there were some 70,887 mortgages approved worth £8.2bn - a 4% increase in volume and 6% increase in value when compared with May.
But the number of remortgages rose by 9.6% to 24,080 in June up from 21,967 in May.
With the threat of a rate rise receding Capital Economics says anecdotal evidence suggests that the reason for this latest rise may be the introduction of more competitive products coming on to the lending market for existing owners.
Over the last seven weeks a number of key high street lenders have entered into a rate war in a bid to stimulate demand.
But David Dooks, statistics director at the BBA, says that outlook for the mortgage market remains stagnant.
He says: “Banks continue to lend for house purchase but the weak mortgage market is self-evident, although some growth is coming from the buy-to-let sector to meet demand for rental properties.”
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