Remortgaging is on the rise as UK homeowners capitalise on record-low rates

 
Helen Cahill
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House Prices Are Stagnant In London
Yorkshire Building Society has brought mortgage rates to a record low (Source: Getty)

Homeowners continued to take advantage of record low mortgage rates in March.

Remortgage approvals increased two per cent year-on-year, reaching 24,657, according to figures from the British Bankers' Association (BBA).

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The lift in remortgaging is set to continue after Yorkshire Building Society unveiled a record-low mortgage rate of just 0.89 per cent.

There were 41,061 home purchase approvals in March, down 2.8 per cent on the previous month. However, BBA said the figure was near the six-month average of 41,600.

Gross mortgage borrowing hit £13.2bn, which the BBA said was also in line with previous months.

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"March last year was sharply inflated by purchases of buy-to-let and second homes ahead of the April rise in stamp duty, so year-on-year comparison is not appropriate," the BBA said.

The three per cent stamp duty hike on second homes significantly skewed home sales figures in April. The number of homes bought in March fell 40 per cent year-on-year, down from 173,860 to 102,810. Sales boomed in March 2016 as landlords rushed to exchange on properties before the tax change came in.

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