Mortgage lending and approvals fell back in June, according to the British Bankers’ Association, because of uncertainty surrounding the Referendum.
A month on from the decision to leave the European Union, it is too early to say for sure what impact this has had on the market. June’s mortgage lending figures are too close to the event to be truly conclusive, although they indicate that lower mortgage lending and approvals were a result of uncertainty. However, gross and net mortgage borrowing were still both higher than a year ago. Approval numbers also picked up from April, where numbers were lower following a surge in the first quarter as landlords brought forward buying decisions.
Remortgaging is on the rise, a trend we expect to see continue over coming months. This is not so much because borrowers fear a rate rise – on the contrary it looks increasingly as though the next move in base rate will be downwards – but because fixed rates in particular are just so cheap.