The UK remortgage market is currently on fire and rightly so as the Bank of England is preparing the country for the first rise in interest rates in several years. This reality is creating a slight adjustment in the number of mortgage approvals compared with other types of approvals. Growth in the number of original loan approvals took a back seat to remortgage growth during the month of September.

According to the latest housing data, the month of September claimed 68,874 original house loan approvals, which is a decrease from the previous month of 70,664. The average over the prior six months is almost 67,000.

Remortgage activity has been especially high due to the expected increase in the base rate which will bring on an immediate increase in interest rates. House owners across the country are scrambling to make a move before lenders decide to increase rates on their remortgage products. During the month of September, 41,163 remortgages were obtained compared with almost 41,000 within the month of August. The past two months are an indication of how house owners are preparing for a rise in interest rates. The previous six months saw an average of 37,194 remortgage applications approved.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), commented on the rise in the number of remortgages, saying: “UK households are sitting on a record £5 trillion worth of housing equity, and the limited window to secure a low rate indicates the possibility of a much-awaited resurgence in remortgage lending.”