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Mortgage approvals hit 7 year high

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Following strong hints from the Bank of England that interest rates will soon be rising again homeowners have been seeking long-term mortgage deals to replace existing discount mortgages.

The Bank’s figures showed that approvals for home loans reached record levels in July, with house purchase mortgages at their highest for 17-months.  Significantly though, remortgage loans reached their highest levels for 7 years, indicating that both buyers and existing homeowners have been looking to lock into an attractive mortgage deal before rates start rising.

Several lenders have felt the competition to get more customers, and have been offering deals with impending deadlines, encouraging home-owners to get their property remortgaged quickly.

However, the changed conditions in World economies following events in China over the past few weeks may significantly ease the pressure to increase interest rates in the short to medium term, so figures for remortgage activity in August may prove to be very different.

If you are looking to remortgage your property and need to appoint a solicitor, please contact our team today.