Record numbers of people cashing in on cheap mortgage rates
Brexit jitters might be putting people off moving, but they’ve not stopped record numbers cashing in on cheap mortgages.
Re-mortgage lending lifted to its strongest levels in seven years in July as home owners snapped up the cheap deals available, banks and building societies have reported.
But elsewhere there were signs of the market cooling, and the Council of Mortgage Lenders, which released the figures, said it is too early to tell how much of this is down to the vote to leave the EU.
Mortgage lending to first-time buyers plunged by nearly a fifth month-on-month in July.
First-time buyers borrowed a total of £4.4 billion-worth of mortgages in July, marking a 19% drop off compared with June and 4% down on July 2015.
In July home owner re-mortgage activity bucked the cooling trend. An average of £6 billion-worth of loans were taken out in July for re-mortgage purposes, up 7% on June and a 20% increase compared with a year ago.
Many mortgage lenders have been offering their cheapest ever rates in the low interest rate environment.
Along with April 2016, the £6million monthly re-mortgaging total was the strongest seen since January 2009.