According to recent data released by the Bank of England, approvals fell 10.6% to 32,273 for remortgages last month down from the previous month’s level of 36,118.  The value of remortgages fell 7.2% to £5.1 billion in August from the previous month’s £5.5 billion.  Approvals overall for mortgage lending fell by 5.8% in a year on year comparison with a seasonally-adjusted level for August.

Approvals in total for the month of August fell to 106,290 from the August 2013 level of 112,825.  While the overall total of approvals declined there was an increase in the value of approved mortgage loans to £16.2 billion in August.  This is a 2.5% increase over the August 2013 level of £15.8 billion.

Purchase approvals for August increased by 0.9% over the August 2013 level.  There were 64,212 compared to the previous year’s 63,608 approvals.  The value level showed an increase as well at 7.2% with £10.4 billion in purchase approvals compared to the August 2013 level of £9.7 billion.

Despite the decline in remortgage activity, experts believe that as the Bank of England’s Monetary Policy Committee draws nearer to a standard base interest rate increase the rush for a new mortgage deal will occur.  Currently as demand is slower than expected it could prove beneficial for those homeowners that are coming out early to secure a low rate.  Lenders are not likely to wait upon the Bank to start making changes in their interest rate offerings.  The cheapest remortgage rates are expected to begin disappearing before the interest rate is changed for the first time since March 2009.  Therefore, the early shoppers for a remortgage deal could be the ones with the best deals found.