May mortgage approvals static as remortgaging rises: BoE

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Mortgage approvals for house purchase edged up 0.2 per cent month-on-month to 65,202 in May, according to the latest figures from the Bank of England.

The figure for last May was 66,477.

Anderson Harris director Jonathan Harris says: “Approvals for house purchase are broadly stable although remortgaging continues to rise as borrowers take advantage of cheap fixed-rate mortgages in particular.”

Remortgaging approvals rose from 40,437 in April to 42,955 in May.

LMS chief executive Andy Knee says: “Market conditions remain favourable for remortgagors. Mortgage rates remain low, which gives homeowners the option of locking into longer term deals amid an uncertain macroeconomic backdrop.”

Hope Capital chief executive Jonathan Sealey says: “Activity in the remortgage market in May picked up slightly and was higher than in March and April.

“Going forwards, due to increasing speculation around the possibility of a rise in interest rates, it is likely that many savvy borrowers will take full advantage of the competitive rates on offer now.”