Increase in borrowers remortgaging homes at end of 2021
More home-owners were remortgaging in the final quarter of 2021 as speculation over an interest rate rise took hold.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The number of home-owners remortgaging their properties jumped up towards pre-coronavirus pandemic levels at the end of last year, according to Bank of England figures.
The Bank said the share of home loans advanced to borrowers remortgaging their homes “moved towards levels observed before the pandemic”.
Some 28.1% of mortgages for owner-occupation handed out in the fourth quarter of 2021 were remortgage loans, marking a 9.7 percentage point increase compared with the same period in 2020.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “We saw a remortgage renaissance at the end of last year, as property owners leapt through the window of opportunity to lock in a cheap deal for years before higher rates took hold.
During the last three months of 2021, rate rise speculation took hold
“During the last three months of 2021, rate rise speculation took hold, so much so that the markets were surprised when the first rise was put off until December.
“Property owners realised that the era of cheap mortgages deals was coming to an end, so now was the time to get a new fixed-rate deal while they were still around.”
Ms Coles added: “Despite the recent rises, mortgage rates are still incredibly low.”
Karen Noye, a mortgage expert at wealth managers Quilter, said: “Throughout 2022, we are likely to see mortgage lending drop as more people are priced out of the market by the rising cost of living and put off by the current economic uncertainty.
“First-time buyers who were already struggling to take their first step on the property ladder will likely find it harder still as any deposit saved for a house will be continually eroded by inflation which will reduce their spending power.”