Savvy borrowers in race to remortgage before the Bank of England hoists interest rateComments Off on Savvy borrowers in race to remortgage before the Bank of England hoists interest rate
Its latest figures showed 23,985 remortgaging deals in June, a 20% rise on the same month last year.
The BBA’s chief economist Richard Woolhouse said the increase in the number of people remortgaging “could be down to savvy borrowers taking advantage of competitive deals on fixed-rate mortgages ahead of a possible rise in interest rates”.
He added that the overall market was “beginning to hot up again” as the number of loans for house purchase hit a higher-than-expected 44,488 over the month, well above the 39,340 average of the past six months.
The figures come against a backdrop of a hawkish shift in rhetoric from the Bank of England.
Governor Mark Carney last week flagged up that homeowners should expect a rate rise “around the turn of the year”, while the monetary policy committee’s David Miles, a former dove, has also shifted stance, saying interest rates should go up soon.
Minutes of the Bank’s July meeting revealed growing splits on the nine-strong committee, fuelling expectations that some members will vote for hikes in August.
IHS Global Insight’s Howard Archer said: “There is now a very real prospect that the Bank could act before the end of 2015.”