Appetite for re-mortgaging expected to grow, Bank of England survey finds

Households’ appetite for re-mortgaging is expected to increase significantly in the coming months, a Bank of England survey of lenders has found.

But some might find it harder to find a home loan – as the Bank’s Credit Conditions Survey also found that mortgage availability to households fell in the three months to the end of August and is expected to edge down again between now and the end of November.

As part of the Bank’s role to maintain financial stability, the Credit Conditions Survey, which is conducted every quarter, asks banks and building societies about the past three months and the coming three months.

The latest survey was carried out between August 20 and September 7.

It found lenders reported demand for mortgages from home buyers was unchanged in the previous three months, and was expected to remain no different in the coming three months.

However, demand for re-mortgaging increased significantly in the previous three months and was expected to increase significantly again in the next three months.

There has also been a significant increase in demand for credit card lending – the latest survey found, although this is expected to fall back in the coming three months.

Now may be a particularly good time for some home owners to re-mortgage, following August’s base rate rise which pushed up costs for some borrowers on variable rate deals.

Recent figures from Moneyfacts.co.uk showed the average two-year fixed mortgage rate has fallen for the first time in a year.

Moneyfacts.co.uk said the average two-year fixed rate on the market fell to 2.49% in October, from 2.53% in September.

It was the first time this measure had fallen for 12 months, since a record low of 2.2% was reached in October 2017, Moneyfacts said.