Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), highlighted the rise in number of remortgage approvals by almost a third annually.
He commented:
“The remortgage market was left battered and bruised by the recent recession, but 2015 saw the greatest number of remortgage approvals in four years. As house prices climb and mortgage rates remain low, now is an excellent time to switch to a new mortgage deal.
“Those taking out a loan for house purchase are having to take on increasing levels of debt, with the average value of a purchase loan reaching a record high of £177,000. Systems are in place to ensure that borrowers don’t overstretch themselves, but this paints a worrying picture of affordability for first-time buyers.
“However, Mark Carney’s recent announcements have alluded there will be no interest rate rise in the near future, and this means the current low mortgage rates are likely to stick around for longer. Rock bottom rates help to make the property market more accessible, and Government schemes for affordable housing will also help lower income buyers.”