UK Housing Market Could be Heating Up Once Again
The UK housing market could be on its way to heating up again, according to the latest figures from the Bank of England. Mortgage approvals were pushed to their highest level in 18 months during the month of July. This data is highly suggesting the housing market is not done being quite active to finish up the year. July’s high number of approvals is in stark contrast to the bottom of the barrel which occurred within the month of November 2014. Approvals last year during the month prior to the New Year totaled only 59,100.
Many close to the UK housing market are estimating an increase in rates will take place before the end of the year. Howard Archer of IHS Global Insight is one of them.
Archer commented on the increase in rates coming in the months ahead, saying: “While we currently expect the Bank of England to first hike interest rates in February 2016, there is now a very real prospect that they could act before the end of 2015. However, the Bank of England is stressing that interest rates will only rise gradually and to a limited extent.”
The remortgage market is especially active currently. More and more house owners are taking advantage of the benefits of a remortgage whilst they are on the clock to get it done. The possibility of a rise in rates is becoming more of a reality with each passing day. Remortgages are a solid financial lending tool which can do more than just help a house owner possibly obtain a lower monthly mortgage payment, it can also free up valuable cash.