Official figures released by the Bank of England have shown an increase in mortgage approvals, especially in the remortgage sector.
The figures show a rise in approvals from 121,818 in November to 124,803 in December 20\15 with the biggest increase coming from the remortgage sector. Remortgage approvals for December were 41,708, up from 39,374 in November and indeed this figure is also the highest remortgage figure seen since the financial crisis.
In October 2008 the remortgage figure was 73,433, but as the full force of the financial crisis hit, the figure dropped to 40,163 in November 2008. Now the sector is experiencing a definite upturn, and indeed this has been the case for much of 2015. Indeed it has been a similar story in the unsecured loans and credit card markets, with lenders rates at historic lows.
Given this level of positivity it is no surprise that remortgages are continuing to increase. Average rates are at an all-time low, and the availability and diverse product range within the sector, perhaps helps to provide an explanation as to overall growth levels.
The data shows that in January 2014 the average two year mortgage rate was 3.43%, whereas in January 2016 the average two year mortgage rate was 2.56%, with a standard variable rate of 4.81%, meaning that those who are now coming to the end of a fixed term rate, can either revert to the lenders SVR which is 1.38% higher or remortgage to a new, significantly less, fixed rate deal, with a 0.87% reduction.
So if you are coming to the end of your fixed term, now is very much the time to consider remortgaging. The figures and data speak volumes, and they are very much based on averages too, so it is possible to remortgage from as little as 1.49%, providing you have 65% loan-to-value. Indeed the positivity with the unsecured loans and credit card markets also mean it is a great time to give yourself a total financial makeover!