Homeowners 'lock-in' low mortgage rates

Tuesday 31 October 2017

Lenders saw a rise in re-mortgaging in September with interest rates looking likely to rise for the first time in a decade. A rise in re-mortgaging ahead of an expected interest rate rise next month helped boost the value of home loans to £21.4bn last month. That helped fuel the 5% increase in gross mortgage lending in September, compared to the same month last year, reported by trade association UK Finance. "Competition amongst lenders, as well as near record low mortgage rates, has meant more and more home-owners are re-mortgaging and locking in deals," its monthly report said. "Borrowers are clearly continuing to take advantage of a favorable, low rate environment by re-mortgaging ahead of a potential base rate rise."

The Bank is widely expected to increase interest rates from 0.25% to 0.5% next week - which would be the first hike since 2007.