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Remortgaging collapses as homeowners sit tight
Originally posted by 5corpio
Britain's banks have reported a big drop-off in remortgaging activity as expectations of interest rate rises begin to fade.
The British Bankers' Association (BBA), whose members account for two-thirds of all UK mortgage lending, said its figure of 21,519
approvals for remortgages in May was well down on the average of 24,571 for the previous six months.
House purchase approvals were slightly higher than in April at 30,509 but 15pc lower than a year ago. The average mortgage being approved was £147,700 - almost 2pc less than in May 2010.
Many homeowners were prompted to seek fixed-rate mortgages earlier this year amid expectations of an imminent hike in interest rates. But recent economic uncertainty, coupled with the financial turmoil in Europe means that most economists are not now expecting the Bank of England to raise rates until next spring.
The BBA said gross mortgage lending was largely stable but, with homeowners stepping up repayments amid the low interest rate environment, net mortgage lending increased by just...More on this story...Remortgaging collapses as homeowners sit tight - Telegraph
The British Bankers' Association (BBA), whose members account for two-thirds of all UK mortgage lending, said its figure of 21,519
approvals for remortgages in May was well down on the average of 24,571 for the previous six months.
House purchase approvals were slightly higher than in April at 30,509 but 15pc lower than a year ago. The average mortgage being approved was £147,700 - almost 2pc less than in May 2010.
Many homeowners were prompted to seek fixed-rate mortgages earlier this year amid expectations of an imminent hike in interest rates. But recent economic uncertainty, coupled with the financial turmoil in Europe means that most economists are not now expecting the Bank of England to raise rates until next spring.
The BBA said gross mortgage lending was largely stable but, with homeowners stepping up repayments amid the low interest rate environment, net mortgage lending increased by just...More on this story...Remortgaging collapses as homeowners sit tight - Telegraph