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Change in the air as Bank of England reveals rising mortgage borrowing and cool approvals
“Net mortgage borrowing is well above its pre-pandemic average while approvals have fallen behind. The current trend is likely being powered by house hunters rushing to transact before the cost of borrowing climbs further.
“Mortgage repayments are pretty flat. This is the cost of living squeeze in action and it’s expected both net lending and approvals will begin to fall relatively soon. The pace of that fall could be quicker than expected if the housing market cools rapidly.
“The pace of remortgaging is harder to predict. Anyone closing in on the end of a fixed term deal should be working out whether it might be worth switching early, and paying the Early Repayment Charge (ERC). Even ERCs worth many thousands of pounds can be made up for by locking in a better rate now. The most important advice for consumers is to be proactive. Don’t assume switching is a date in the diary. You can do it any time.”
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About James Andrews
James has spent the past 15 years writing and editing personal finance news, specialising in consumer rights, pensions, insurance, property and investments - picking up a series of awards for his journalism along the way.