Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB) announced 2015 a successful year for borrowers as the number of mortgage approvals grew to nearly reach a two-year high in December.
“Existing homeowners were the frontrunners in this growth, with the number of remortgage approvals rising by more than a quarter since December 2014.
“Borrowers benefited from rock-bottom mortgage rates throughout 2015, and our data shows that rates continued to fall across all fixed rate products in December*.
“Growing numbers of homeowners are wising up to the fact that it pays to remortgage, particularly if moving from a poor value standard variable rate. Borrowers who are comfortable with a long-term commitment can take advantage of today’s rates by locking into a fixed product, avoiding higher mortgage bills when an interest rate rise eventually kicks in.
“For those who do not have the comfort of already sitting on the property ladder and are looking to buy for the first time, the outlook is still positive. Although not quite up to pre-recession levels, mortgage approvals for house purchase have improved markedly in recent years and lenders are battling for business.
“However, with house prices continuing to rise, affordability remains a concern, and today’s low mortgage rates aren’t a permanent fixture of the market.”
*Mortgage Advice Bureau – National Mortgage Index, December 2015