Mortgage approval data released from the Bank of England revealed that February marked a six month high. The reason for the increase was likely due to falling house prices at the end of last year as well as continued low interest rate offers. Lenders approved 61,760 mortgages in comparison to the 60,707 from the previous month of January.

February approvals exceeded the expectations of 61,500 that had been forecasted. The month’s data marked the third straight increase in approvals.

House prices fell across the UK in January by 0.2% which was the first decline recorded in 10 months.

Despite the rally in mortgage approvals the level still remains below the 74 month high recorded in January of last year.

Demand for property is expected to grow due to information reported by Rightmove, the online property lister, that revealed increases in interest for property especially by first time buyers. Stamp duty revision, continued low interest rates offered by lenders, and usual seasonal increases in demand for property are expected to give the housing market a boost.

Those seeking mortgage loans, including remortgages, should be warned that in the very near future interest rates will be increasing. Lenders will no longer be in a competitive mode in seeking borrowers. Demand will increase and the need for bottom level interest rates to attract hopeful home buyers, homeowners, and home movers will end. The cheapest deals will be pulled and replaced with higher interest rate offers.

Because of the expected change, those considering a remortgage, to move home, or to purchase their first home, could benefit by shopping for a new deal soon, before lenders make changes and the cheapest interest rates are gone.