UK housing market mortgage approvals are on the rise according to the latest figures from the Bank of England. The market has experienced an increase of more than 8% during the six months leading to August of this year. Approvals for house purchases totaled more than 71,000 in August which is an improvement over the six month average prior to August of 65,594. As residence loans are increasing, so is remortgage activity. It has increased more than 14% during the last six months.

David Whittaker, managing director of Mortgages for Business, commented on the latest figures regarding the UK housing market mortgage approvals sector, saying: “There is an ongoing shift to different sorts of mortgage lending, and a booming remortgage market reflects that interest in new products. Even compared to extremely buoyant house purchase approvals, remortgaging has picked up more quickly, reflecting ongoing expectations of higher interest rates on the horizon, as well as a newfound love for the peace of mind of fixed rate deals.”

Whittaker added: “It isn’t boom times in every quarter though. Buy to let lending accounts for much of the trend to remortgaging specifically, and we are seeing strong interest from experienced landlords looking to take advantage of record low rates, even for fixed rate deals for five years or longer. But there is also a more muted tone to the buy to let industry now. Alongside an acceleration in overall mortgage lending, this could indicate a gradual correction in the proportion of mortgage lending to landlords.”

Many house owners are obtaining remortgage deals with fixed rates in preparation of the eventual rise in base rate.