The Intermediary Mortgage Lenders Association Mortgage Market Tracker for Q2 shows that 76 per cent of remortgage applications resulted in a completion, up from 70 per cent in Q1.
This amounts to 115,000 new remortgages, a rise of 8.4 per cent year-on-year, totalling £20.7bn.
Imla points to anticipation of August’s interest rate rise as a reason for this, highlighting the similar burst of remortgage activity prior to the rate rise in November 2017, when 78 per cent of applications were completed as compared to 75 per cent in the previous quarter.
The association also released data that shows that 11 per cent of brokers expect the Bank of England to raise rates before the end of 2018, and that 28 per cent expect the remortgage market to grow even further in the second half of the year.
IMLA executive director Kate Davies says: “The Bank of England’s response to managing rising inflation had been widely anticipated by the industry and consumers, and it is inevitable that many borrowers will have sought to take advantage of opportunities to lock into very low-rate deals while these are available.
“While customers who remain on tracker and standard variable rates are having to adjust to a second increase in monthly loan repayments in twelve months, competition in the market remains strong and should ensure keen and competitive pricing. The enhanced affordability rules introduced in April 2014, following the Mortgage Market Review were specifically designed to ensure that borrowers would be able to absorb rate increases without suffering detriment.
“For those who took out their mortgages before that date, some may be eligible for further support from the commitment, made by more than 90% of lenders in response to the FCA’s recent Mortgage Market Report to help borrowers switch to better offers.”