Historically low interest rates have led to a surge in remortgage lending as new data shows that year-on-year figures rose by almost 16% in January.
According to the latest high street banking data from the British Bankers Association (BBA), gross mortgage lending hit £13.8 billion in January, up 6.3% on the same period last year.
Net mortgage borrowing rose by 2.4% compared to January 2016 and remortgage approvals soared to 28,862, up 15.7%.
Overall, house purchase approvals came to 44,657, 2.5% lower than in January 2016, but 2.5% higher than December and above 2016’s monthly average of 41,320.
Eric Leenders, BBA Managing Director for Retail Banking, said:
“The new year saw homeowners make the most of historically low interest rates by taking advantage of competitive remortgage offers. Nearly 29,000 of these deals were approved last month – 16% higher than January last year.”
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