The UK housing market it beginning to wake up and contrast with a more than quiet spring, according to the latest data. During the month of June, mortgage approvals have risen by 8% more than during the same month last year. Mortgage approvals totaled more than 44,400 in the month, according to the latest data from the British Bankers’ Association. This represents an increase of more than 5,000 compared with the average during the prior six months.

Several factors are contributing to the latest surge in activity within the market. The biggest could be the latest remarks by Mark Carney, the governor of the Bank of England. He noted in his last public announcement that the base rate could be increasing before the end of the year. This has affected the timing of many housing decisions, especially ones which were considering the purchase of a new home or not. Locking into a fixed rate mortgage loan product is most desirable at this time.

Mention of an increase in the base rate by the governor has also sparked a surge of activity within the remortgage market. Since the beginning of the year, remortgage numbers have increased by 20%. For homeowners who are able to remortgage, now is the perfect time to do so. Even a small increase in the base rate could mean many pounds difference in the size of a new monthly mortgage payment. Remortgages are now readily available online and can be obtained at any time.

Charlotte Nelson of Moneyfacts commented on the latest data which has surfaced regarding the amount of activity within the UK housing market, saying: "This rise is partly fueled by record-low mortgage deals. The average two-year fixed rate mortgage has fallen from 3.67% a year ago to 2.75% today, and borrowers are clearly taking advantage of these low rates to secure lower monthly repayments.”

Nelson added: "However, with Mark Carney's announcement that base rate is likely to rise in the near future, these low rates will not be around for long."