28 July 2017

MORTGAGE APPROVALS TICK LOWER BUT LENDER APPETITE UNDIMINISHED

MORTGAGE APPROVALS IN JUNE WERE LOWER THAN THE MONTHLY AVERAGE OVER THE PREVIOUS SIX MONTHS, ACCORDING TO UK FINANCE, BUT SIMILAR TO THE SAME MONTH LAST YEAR. SURPRISINGLY, REMORTGAGING ALSO FELL AS BORROWERS DECLINED TO TAKE ADVANTAGE OF CHEAP MORTGAGE DEALS.

While there may be growing demands on household incomes, the good news is that lender appetite remains strong with very little upward pressure on interest rates. This may, however, explain why remortgage numbers have failed to increase, with borrowers often only compelled to take action after the second or even third interest rate rise.

As so many stories circulate regarding mortgage prisoners – borrowers who can’t remortgage perhaps because they are older, require an interest-only mortgage or are self-employed – there may be those who feel, wrongly, that they won’t be able to get another deal.

With HSBC the latest lender to make many reductions across its range of fixed-rate mortgages later this week, including a five-year fix pegged at just 1.59 per cent, fixes are as low as they have ever been. This is great news for borrowers so it is worth seeking independent advice to find out whether you qualify for a cheaper deal.

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