With the year 2016 reaching its completion in a few months, house mortgage selling season has officially come to an end. The latest data to surface following the busy summer months indicates a slowing in the amount of mortgage lending has begun. The month of August posted a total of 37,000 approvals which is the lowest number since the month of January last year. Year on year, approvals were more than 20% lower.

As mortgage lending is starting to run downhill, remortgage activity remains strong. Lenders are locked in a battle of who can offer the lowest interest rates, and that is benefitting borrowers looking to lower their monthly mortgage payment. Many house owners have seen a savings of more than £500 after obtaining a remortgage.

Not only are house owners finding big savings, they are also able to access home equity which is making it possible to increase a savings pot, start a home renovation, or pay off old debt which has been a burden for years.

Samuel Tombs of Pantheon Macroeconomics commented on the latest BBA data, saying: “House purchase demand is continuing to weaken, despite the steady fall in mortgage rates since the start of the year. Mortgage approvals fell for the third consecutive month in August and were down 21% year-over-year. Admittedly, it is too soon to see the full impact of the MPC’s interest rate cut on mortgage approvals, given the time it takes for loan applications to be approved.”

Tombs added: “Still, a small majority of surveyors reported that new buyer enquiries fell in August, according to RICS [the Royal Institution of Chartered Surveyors], the fifth consecutive month of declining demand.”